






Serial No........ 421 Taleo ot ae 


UNIFORM COST and ACCOUNTING SYSTEM 


for 


MILLERS’ NATIONAL FEDERATION 


(Revised November, 1926) 


i 


PREPARED AND DISTRIBUTED TO MEMBERS 
BY 


MILLERS’ NATIONAL FEDERATION 
Chicago, Illinois 











INTRODUCTION 


Purposes of Uniform Methods for Trade Associations 


Uniform cost finding methods have been adopted by many trade associations; 
and such methods, if properly formulated and generally accepted by the members, exert 
a very helpful influence in bettering conditions in the industry. In accomplishing 
this objective, uniform methods have three functions to fulfill, which are = 


First = To enable each manufacturer in the industry to conduct his own 
business in the most intelligent and profitable manner. 


Second = To eliminate that part of the variation in costs between members 
which arise from totally dissimilar methods of calculation. 


Third = To make possible the comparison of cost information between plants 
in such a way as to point out wasteful and uneconomical practices of either the in- 
dividual or the industry. 


Uniform methods do not imply uniform costs. All the factors affecting 
cost will never be identical in any two plants and these variations will be reflected 
in costs developed by uniform methods. Differences in such items as kind of equip- 
ment, wage rates, plant efficiency, etc., will all produce variations in the final 
cost of the products. 


Functions of a Cost System 


The final objective of any flour milling company is to make and distribute 
profits. The profits in any business measure the difference between the cost of the 
product sold and the money received from its sale. Unless the management of a 
business knows exactly what the product costs to make and sell it is impossible to 
determine intelligently on selling policies. It is a fundamental axiom that a 
Simple adequate method of determining costs is absolutely necessary to the success-= 
ful operation of any business. 


A cost system, to be satisfactory to the individual manufacturer, must 
fulfill three primary functions: First, it must make possible the securing of an 
accurate cost of each product; second, it must enable the accounting department to 
so keep its records as to provide monthly statements of the financial condition and 
general status of the business; and third, it must provide certain data to enable 
executives to exercise close control over the details of the operation of the 
business. 


In the following pages we have outlined a system which we believe fulfills 
these functions and at the same time provides the necessary data in a Simple and 
effective fashion. 





: f - 4 eee j » ar in) a 
: i 4 Fs Sen ‘ ‘ ; A 


COST ACCOUNTING 


Elements of Cost 





An adequate cost system for the flour milling industry is comparatively 
Simple. Most plants engaged in the industry produce only one main product and all 
elements of cost may be expressed as so much per barrel of flour. On the other hand, 
there are certain difficulties inherent in the industry which can only be met by 
arriving at a common and uniform understanding of the proper way to handle them. 


The cost of a barrel of patent flour consists of five separate factors = 
the first is the cost of the wheat; the second is the cost of the manufacturing or 
conversion; the third is the cost of the containers; the fourth is the cost of 
administration, and the fifth is the cost of selling or marketing. 


From this total must be deducted the values of low grade flour and offal. 
“As this is one of the most important points in determining the cost of a barrel of 
‘flour, we will discuss for a moment the question of these offal credits. 


Deductions For Clears and Offal 


The present general custom in the industry is to credit the offal values 
at the anticipated selling price. This means that no allowance is made for profit 
on the by-products and that no provision is made against a possible change in market 
price which might reduce their value on the day of their sale. 


The most conservatively managed mills make a reduction from the anticipated 
market price of the by-products before crediting the values to the cost of the patent 
flour. We are very much impressed with the value of this method of handling the 
matter and recommend that the allowance be made at current by-product prices the day 
the order is booked or anticipated prices the day the flour will be made, whichever 
is lower, and we provide that this price be reduced by 40 cents a barrel for clears 
and $2.00 per ton for feed. 


This policy will tend to increase slightly the calculated costs of the 
patent flour; so that the cost figure, which should mark the line of last resistance 
in determining whether a certain sale is or is not a desirable one, will be set a 
little way forward. 


Separation of Grain Department 


In outlining the proposed system we will first consider the cost of the 
wheat ; and at this point will seek to establish a major change and improvement in 
the accounting methods of the industry. The profit or loss secured in operating a 
milling business ordinarily combines two factors; namely, the speculative profit or 
loss in purchasing the wheat and the converting and merchandising profit or loss in 
producing and selling the flour. Most mills seek to minimize the speculative profit 
or loss by purchasing wheat against the commitments in flour; but even with the best 
intentions and practice there is bound to be some profit or loss in purchasing, and 
under present accounting methods this purchasing profit or loss is usually in- 

' extricably mixed up with the conversion profit or loss. 


It seems to us to be fundamentally necessary that these two factors should 
be distinct. Only in that way can the true sources of profit be known. We there- 


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fore provide a system of orders and commitments between the Grain Department and 
the Mill Department which requires that the Mill Department be permitted to purchase 
from the Grain Department the wheat equivalent of its flour sales each day, at the 
"cost card" milling mixture values, based on the market price of equivalent grades 
as of the day the orders for flour are taken. These wheat orders on the part of the Mill 
Department and sales on the part of the Grain Department are called "grain contracts." 


This means that the wheat position of the Mill Department will always be in 
balance. The Mill Department will always have ordered from the Grain Department 
exactly enough wheat to cover the flour sold. The "long or short" position will rest 
in the Grain Department and all of the profits or losses made in connection with the 
transactions in purchasing of grain will be established and segregated as pertaining 
to the Grain Department. 


The grain contracts, then, give us a basis of crediting the Grain Depart- 
ment and debiting the Mill Department just as though the two divisions of the 
business were distinct concerns. A complication arises at this point, however, due 
to the fact that in many mills it is impractical to "earmark" grain delivered to the 
mill as going into specific sales, or to the specific related grain contracts. For 
this reason it is provided that the Mill Department be charged with wheat assuming 
the deliveries to be made in the order of the grain contract bookings. 


While we thus distinguish between the functions of purchasing and milling 
and set up the profit or loss of each department separately, the Mill Department is re- 
quired to bear the operating expenses of the Grain Department and the Grain Department's 
profit or loss will thus reflect only the speculative factor due to purchasing. 


Grain Contract Record 


Most mills operate what is rather commonly called a "long and short state- 
ment," which shows the daily position as to wheat and reflects any lack of balance 
between the wheat equivalent of the unfilled flour sales and the total stock of 
wheat on hand and purchased. A study of Form 1 will show that the establishing of a 
separate Grain Department requires little more than that this record should be 
extended to reflect dollars and cents values as well as bushels. 


The wheat requirement of the mill is priced each day, as has been said, at 
the "cost card" milling mixture values, based on the market for equivalent grades; 
The totals show in bushels and dollars the purchases of the Mill Department and the 
commitments of the Grain Department for the month. 


At the end of the month the Grain Department's deliveries in bushels are 
priced so as to absorb the grain contracts in the order of their bookings: This 
leaves the unfilled grain contracts to be carried forward to the following month 
priced at the average of the contracts unabsorbed by the volume of the month's 


deliveries. 


The manner in which the actual cost of the grain delivered by the Grain 
Department is thrown against the Grain Department's income from sales to the Mill 
Department - thus establishing the Grain Department's profit or loss = is shown 
in the second part of this report which deals with general accounting practice. 


‘Standard Costs 
The present custom in determining the manufacturing cost of a barrel of 
flour is to take the costs that have actually been expended and distribute them over 


the number of barrels of flour actually produced. There are a great many minor 


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variations of this plan but the majority of the mills are operating on what has come 
to be known as the historical method. 


In recent years the use of historical costs has been seriously questioned 
and the inherent inefficiencies of the historical method have been thoroughly 
explained and set forth in a great many books and articles written on the subject. 
As a result of this discussion, the so-called standard cost method has been grad- 
ually developed and is today in use in a great many of the most successful companies 
in the country. The standard cost method consists, briefly, in pre-determining what 
the costs should be and then measuring actual performances in terms of these 
standards. We recommend the use of this Standard method to the flour industry in so 
far as the cost of manufacturing, containers, administration and selling are 
concerned. 


The first step necessary in calculating a standard or pre-figured cost is 
the determination of the rate of production at which the standard will be figured. 
If we set up an operating budget for a mill it is obvious that certain elements of 
this budget will remain fixed regardless of whether we are operating the mill at 
50% or at 100% of capacity. Certain other elements will vary somewhat in accordance 
with the rate of operation although not in direct proportion to it. Before we can 
pre-determine the cost of making a barrel of flour, then, we must fix upon the rate 
of activity, or percentage to capacity, which our cost is to represent. 


In the light of past performances and normal expectance for the future, 
each member will be in a position to determine at what percentage to capacity he is 
likely to be able to operate. There is considerable difference of opinion as to 
what may be considered "monthly capacity" but for the present it will be based on 
one=twelfth of 300 days a year at twenty-four hours a day. The daily production will 
be based on the number of barrels produced on recent long runs of thirty days or 
moree 


At a later date, when sufficient information has been gathered from re- 
ports of members to the Federation, it is expected that it will be possible to 
determine the normal percentage to capacity at which member plants are operated in 
the various territories: At that time members will be asked to build a secondary 
budget based upon the average percentage to capacity for their region. 


Operating Budget 


The budget rate of activity having been determined, the next step is to 
prepare a carefully worked out monthly manufacturing, administrative and selling 
budget. This budget must be built up in the same detail and with the same classifi- 
cations that are to be used by the accounting department in determining and recording 
the actual expenses incurred: The whole meat of this method of cost determination 
lies in a comparison of the amounts actually expended with the standards set up in 
the budget. 


For this purpose we recommend the use of Form 2, which under Section "A" 
sets forth in exact detail the various elements which should be included in the 
manufacturing budget; in Section "B" the various items which should be included in 
the administrative budget, and in Section "C" the various items which should be 
included in the selling budget. 


In the smaller mills, where a detailed division of the expenses is unneces- 
sary and undesirable from the standpoint of clerical economy, the division of the 
cost items can, if desired, stop with the main classifications indicated on Form 2. 

The larger mills, where it is necessary to keep a more detailed analytical record of 


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the expenditures, are urged to adopt the standard list of operating accounts out— 
lined on Forms 4 and 4-A. Even this list can be elaborated by additional sub— 
classifications. In other words, the plan which we suggest is so elastic that it 
can be used by both the smallest and the largest mills, bringing out information in 
as much or as little detail as desired — and yet making the totals and the per 
barrel costs of these totals absolutely comparable. 


Form 2, then, will serve three purposes = first, for the member's own use 
it will serve as a yearly and monthly budget; second, it will enable him to compare 
each month's actual performance with his budget; and third, it will serve as the 
report which each mill will make monthly or at such other periods as may be agreed 
upon, to the central office of the Federation, so that composite costs may be com- 
piled for different territories, different sizes of mills and for the industry as a 
whole. 


Budget _ of Fixed Charges 


As a preliminary to the development of Form 2 it is necessary to determine 
the fixed charges, and this can best be done on a sheet as per Form 3. This sheet 
should be worked out once a year at the time of preparing the budget, and having been 
worked out does not need to be touched again until a new budget is prepared. No 
changes will even then be necessary unless additions to the property have been made 
or variations in valuation occur. It is through this fixed charge sheet that we 
determine monthly charges to operating costs for depreciation, actual interest, 
insurance and taxes. ary 


Depreciation 


Discussing these fixed charges in detail we come first to depreciation. 
Many practices in regard to depreciation are now carried on in the industry, many 
companies making regular and definite monthly depreciation charges, while others 
ignore the item until the end of the year and then make a charge depending on the 
amount of the profits. 


It is our earnest recommendation that it be definitely recognized that 

_ depreciation is a vital and necessary cost, and that proper depreciation charges be 
included in the budget and in the actual operating figures which are worked out 
monthly for comparison with the budget. A definite schedule for depreciation rates 
should be adopted by the industry. As a basis for your consideration we recommend 
the following schedule: 


Buildings - Concrete . 2% 
Brick and Steel 5% 
Mill Construction 4% 
Ordinary Brick 5% 
Frame 6% 
Machinery and Operating Equipment _10% 
General Equipment 10% 
Office Furniture, Fixtures & Equipment 15% 
Automobiles and Auto trucks 25% 


It is obvious that no depreciation should be charged against the investment 
in inventories, land, cash and accounts receivable. 


The amount of depreciation charged into costs monthly will be one-twelfth 
of this total amount and the debit to costs will be offset by a credit to the 
Depreciation Reserve. The only debits to this reserve account will be amounts 


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232% veh i: 


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\ ae ee pee) wigs 1 pa ys ne Wie 


Budget of All Other Charges 


Having entered the fixed charges from Form 3 on Form 2, the other charges 
called for on each line of Form 2 are budgeted separately. The range of the items 
to be considered are suggested by the list of expense account titles provided on 
Forms 4 and 4-A. 


; There is no member whose account titles have in the past agreed exactly 
with the list given. Nevertheless, whatever the titles used the expenditures will 
have been of a nature that will more or less readily fit this line-up of accounts. 
It is not imperative that members adopt the suggested titles so long as it is 
possible to group the existing accounts to provide the broad classifications of 
out-go shown on Form 2. However, it will be found advantageous to adopt the 
Standard titles, because it will simplify reporting and because it will make pos- 
Sible highly detailed comparisons between plants where desired in addition to the 
broad comparisons mentioned above. 


The list of expense account titles shown on Form 4 comprises a great many 
more items than are called for on the budget as shown on Form 2 It is necessary, 
then, to provide collection sheets on which the group totals may be secured: See 
Form 5, Power Charges; Form 6, Auto and Truck Expense; Form 9, General Manufacturing 
Expense; Form 10, General Administration Expense; Form 1l, General Office Selling 
Expense; Form 12, Outside Selling Expense, and Form 13, Branch Office Selling Expense. 


In two of the elements of cost the budget calls for more detail than is 
provided by the ledger accounts. Hence, we have Form 7, which gives an analysis of 
payroll by departments, and Form 8, which makes a departmental analysis of salaries. 
Forms 5 to 13, then, are to be filled out with amounts which conservatively rep- 
resent the estimated expenditures to be included when operating at the budgeted 
percentage to capacity. The amounts are then transferred to Form 2, where they com- 
plete the necessary entries in the budget column. 


The next step is to figure the budgeted cost per barrel for each item and 
for each total. The number of barrels to be used in this calculation is the 
budgeted standard. 


Comparison of Actual Cost With Standard Cost 


An examination of Forms 5 to 13 will indicate that they are intended to be 
used not only as an aid in building the budget but also to serve each month to 
compile the actual cost. The monthly procedure is naturally about the same as that 
gone through in building the budget. The totals, when compiled on this sheet, are 
transferred to their respective positions on Form 2, and thus provide the detailed 
monthly comparison between the budget and the actual cost of operating. 


The next step is to show the profit or loss in actual costs as compared 
with budgets, entering the amounts in the "Variation" columns of all three sections 
of Form 2. Profits will be entered in black ink, losses in red ink. The variation 
is shown on a per barrel basis only. 


. The final step is to make summaries of the totals listed on last lines 
of sections "A", "B" and "C" to their respective positions on the lower lines 


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eae de 
», -f a vik Poop oy ee | > Bo re OO * cf i tak “a an? 
rE we ‘ a hoy, tall A by te 2% aN up f 
et s ety i | r By 4 b} gt b a“ rs a 
> et Og = fF ’ ; ‘ eae ae Tyeae ‘ a 5 oie 5. x a i Me; i F a ave a 
; yh p vit 
ee, ; > yey e screen wee nate Lil ef Begs ood * 
a ¢ t : - { hs ‘ > gyehee 2 ’ -_ a 
natw ctonia mesxiead enon tteqmea hb olind 
he eh 


' GP te seh ten © Ga Ra ee ae i i 
thy be ie ' 


jd od ts treqnoe 
. ‘ .avods 69 cro & Fone 


‘e - - pan ye 
a piel ah me oF vg , ; 4 roo O84 Baits oe He 40° is 


‘ ; ; hve ee f pa 
+ a ' ‘ ‘ ‘ 
| mot Goo ssid edt ie soF aie: Sin 
2 TU i? af. * a ' i iy ape 
i Wy J ‘ 
iH ; | 


ae 
f " “ey f wa o 
c] hal 
‘ ° y he ie » es 
“a h pee a : i > 
We ; Q 4 " 
. 5) ay - 
| hyo ” ; 4 -_. ts ni ty 
, 5 a yet 7 . ' ss y ) ty as cf +i at ) 4 ? , Seppe » } O16 Pe ee 
i 
oy ve y 7 : ote 
fon Ft 4 . 3 7 : | 4 1 q ‘ 
bi l 2 ey ‘ aa ; +) 4 
(tama wot pia - khe u $a 
a ror 
i - ‘ Ls vi f a ELT if i OF Be Qa @ 
Saf i ¥ y ' 
. wu 8 Y efexwiead Fo THomsee. 8 
* ‘Ay 
6 
Sig's 
taod brabaa sé pte. 2200 Seurd 
0 “ Pereserern renee net Lae - ry 
nace ty Mba). 
Ky i | a 75 val ict. 3 5 bg “4 es ry mi w Ez Et uw he 
vol iuvedn ot was fire Poearhrrc git ied! fn d ay sin) 
' SHR. Cc IE had We “Tr 7; 
7 es “at ie (ry 
wml +. ns j ptove oF Merrie tO Te WiFiaow etd ae aon de 
* morte «f { (fac stosny ont it AS ad eid’ garb tte 
fa 4.59 ev" . ‘ ; fue beet 4 Fi 
be sett o parebey Bet nua “8 onot gio eavblyinog evizoe Re 
waciinnwsab Po Téon ieeron ear Poe Je asin er + ae zs 
i fens ff szon iapies mi e202 To Pa tory att, wos rh 
mi . a weet heart eon 
sem eegoe eordd £26 to anmgloo “*aolteliel" ser BA 
ba et ta Mee ia o" oh 
\_ eo a te othe Pr Pm ut ice es ie a o>. 0h s 
in Lone] JH Ls y  hGad eck Bees wh Be@eo. wae ae a re ‘ed 
‘ ' Ty! i 7 ! 


i, iN ; 
7 ne 
ir 












‘en 7 
hae 





he » £ oe “ Gus 6.4 g rs 
J Bo ST has ! tat a One 


of Form 2. The monthly budget column will then show the standard costs to make 

and sell. The actual cost column will show the actual cost to make and sell for the 
current month; and the profit and loss section will provide the per barrel figures 
in the same comprehensive waye We then have in highly graphic and concentrated 
form a picture of the current costs of the business as measured against fixed 
standards. 


Standard Cost Card 


Having followed through the building of the budget we turn to consider the 
use to be made of the standard costs in fixing prices. Some mills do not take the 
trouble to actually refigure costs and prices with every change in market quotations. 
They move the selling prices up or down, but the extent of the move is quite liable 
to be governed by the "mover's" state of mind at the moment. This we think is at the 
bottom of more trouble than would seem at first glance, and without endeavoring to 
point out the faults, let us emphasize the value and importance of the accurate re-=- 
figuring of costs whenever there is a perceptible change in the market price of 
wheat, clears, offal or sacks. Furthermore, let us recommend that this refiguring 
be done in the accounting department or elSewhere by someone who is not liable to be 
under the influence of sales pressure. 


The simplest formula for figuring costs and selling prices is as follows: 

Wheat at replacement value for kinds and grades required at standard 
yield, including premiums and freight on wheats In other words, the 
milling mixture price agreed upon between the Grain Department 
and the Mill Department. 

Operation at standard unit costs per barrel - for manufacturing, administra- 
tion and selling, omitting branch office and other special selling 


costS.e 


Deductions for offal at market or anticipated price, whichever is lower, 
less $2.00 a ton. 


Cost of barrel of straight 100% flour f.o.b. mill. 


Deductions for clears at market or anticipated selling price, whichever 
is lower, less 40 cents a barrel. 


Adjust to cost of full barrel 196 lbs. _% patent flour. 


Add to above the cost of two 98 lb. sacks, including freight, on basis 
of purchase in 1,000 lots. 


Add freight to destination. 


Total 





Also add other special charges for additional sales effort such as 
salesmen, brokers and the like. 


Also add branch office selling if sales are through branch offices. 


Total 





(2) =) 


j eae 


ab . 
£18 sak elie saab Etiw fini ) Joghur tne 
treo fentos et? wode Eiiw om ies geon ray “4 
ey L Ke . obivonrg £file molioer agol but. Bibs) ant | ie 
an hetatraeonos bas otsqety gitetd wl ead mote ef weew eee arteries quay 
| | hortt teaioge betvanem es peactatid ‘edt? to ssaee jadtnre aly 










Be. 





a | 


‘ 


i \ tata Ma 1 os “3 re}? ae Fwemsent eda “ke ‘fbi Dei (+ davowts AewolLo® Rts vs 
t <u a * ‘ + ‘ ws é ‘ ‘ " ae b pa \\,''s 


eri? ox wea [fim este@ aeoltg sated of ereeo peeinate ate. to: 


¥ 7 my ee 
sein a Por 4 \ a ¥ 57 LW USOBVE Oh Br208 ti 1ST wit 
EIT 4,2 eG Lone ; 
r ‘ 2 of 4 & buat ¥ ne ween ty € " or 
& i Pe rtey i - ‘ : 10 FOOTE cid ria “gt oy by YO Gi £83 ate ; grid Nee 
. : Re ti 
ert | ut to otetes*etee 
‘ oT ae , nice it 
f : RN 4  & RR Phe @ Oe ae 5 53 BLOW Bre oi, 
, > way . 
‘ ~ & k ; “shel : > 
- 
agizvaseorweq | reo? 

: ) 4 ee sz ; 

: 4. ; re ; f aS j . «tt eet os SEP a0 
ed. at. el tk socal Bar(peaye vd etecweete io Poom7yre (Ok) Rs shinooos, 

ge sates 0a 
: + 


ae 4 


L gewoliet te ef aeoltg ae ic etead gtireyit wot eles toLanne i 
ae » err 

| fete Mone ginbey, dehirn shnist vet eutev. ¢ nowsostqet) ti, See 
‘ga 2bre ; | Srigtes?. Sov wine ra anlbifogs blety oF 
itentiAaeU oe 4 pow Jt coun booteaea opie erutere gk tf fee 


f oe c+ oor ag 
* Mes tage 2 AM on 


Lig 
hy, ert3 4 4 i . j * OTe 
¥ ‘ aw 6 £4 
vs {4 | "EGS iG UW r i { J LAO «6g fehe 
: 
“eeo0l eat wzeveriol pyivte Soetacioifns 20 Fes ; 38 fetta ~o% ere 
, 
> A ~~? 
a! vs fi 10 she. 2 
; ; 2oet tholt BOOL JIdagsarvia Fo ferred ny 
i 
, atinicde .evolk rtf Jealolink to Jedtoais Je eteerid tof 
; gLatt 190 OD Be 
-* ‘ ty ead fexzed. {i101 
“ 
- 
ai ot Dat. coc i Des tet overt Yr “ae “al ah sex tO bh 


) BOL), OOO, .f 3 a 





; 
~woltsaiza 
Lidtte: setae. tele lshben.cin’ Meseeailnen 1 satto, boa. oofal 
10778 faa 8 he EP Oe BAO l yl OO EGA ASwrs baa qe 


abt ent br eredond denaeine ie 


t ‘ “i 
Lane FY Ha * ale 


foaard clmsorsis “ante nolas | fs aatiton aay ato 











ig et ‘Lae Lib ott oat ie CT ae t. 


PRM ain AA Pe 





The total will be today's standard cost for the grade figured; first, if 
sold by home office; second, if additional sales effort has been used; third, if 
sold through branches. 


Form 14 is a condensed standard cost card for figuring the cost of a barrel 
of flour, including profits and indicating a selling price. In many mills it will be 
possible to do all figuring of cost on the condensed cost card. 


Detailed Standard Cost Cards 


Form 15A is a detailed standard cost card for determining the cost of 100% 
flour. Form 15B is a supplementary detailed standard cost card beginning with the 
cost of 100% flour, following with grading adjustments for clears, adding supple- 
mentary costs for containers, and also for outside selling and branch offices; thus 
leading to the total cost at standard and the indicating of profit and selling 
price. The detailed standard cost cards are given in order to provide the detailed 
procedure for securing the grain contract price of milling mixtures and for building 
the condensed standard cost card. 


The first sheet of the detailed standard cost card is for determining the 
cost of 100% flour. For this reason it provides for, deduction for offal but not for 
the deduction of clears in making grade adjustments. At the head of the card pro- 
vision is made for the grade, the date of the card, the card number, the basic future 
and the standard yield, with the understanding that 4 lbs. may be added as a safety 
for invisible loss. . 


The section for cost of wheat provides for blending of four different 
grades and protein content, leading to the final blend, the number of pounds at 
standard yield and the total cost of the wheat for one barrel of flour. If freight 
on wheat has not been included in the prices used, then the amount for freight will 
be added, leading to the total cost of wheat and freight. The result will conform 
with the price charged the mill for the milling mixture. 


In deductions for offal, the basis is for one barrel bulk price, mill, 
less the $2.00 a ton allowance. Provision is made for indicating the current or 
anticipated price per ton, whichever is lower; the number of pounds deduction on a 
barrel of flour, the rate per pound and the allowance price, leading to the total 
deductions for offal and the net cost of wheat for barrel of 100% flour after con- 
Sidering the allowance for offal as a deduction from the cost of wheat. 


The cost of operation is figured at standard costs per barrel as developed 
on Form 2. The costs which should be considered are those for manufacturing, admin- 
istration and office selling at standard cost per barrel, leading to the total 
operation cost at standard and to the bulk cost of 100% flour. This cost may be 
carried forward to the second sheet, Form 15B, the supplementary detailed standard 
cost card. There may be Several supplementary cards for different grades of patent 
flour, and for different supplementary costs, selling expenses, etc., all based on a 
Single bulk cost, leading to different total costs. 


At the head of the supplementary standard cost card, Form 15B, is indi- 
cated the particular grade of patent, the date and the cost card number of the 
original card, with a supplementary letter or figure to indicate the particular sup- 
plementary card. This card begins with the bulk price of 100% flour brought forward 
from the end of the master card. The gradings for adjustment are for first and 
second clears on one barrel basis, bulk price, mill, less the 40 cent allowance 
recommended. Provision is made for indicating the percent of each clear, the number 
of pounds per barrel of flour, the price per pound on the indicated barrel basis, 


= Os 


ota add. ets noah’ te te edie ons Sots Loivk eet 


3y beret’) ebaty ene “ort. 2eeo: pembassé rheabe pe 
god, Bod dot ls: SeRRe Mee h Sno es 


. * « * ’ 
pane + ais had, 4a P<? 






























sf). Rattwatr ct base dheo bre! Spies Y se a Gr 4 


ie o : 5 a 
quam at enotug as ioe B BeLIAGs helt bam dpb rong ‘geet 

.btso Saou beaeheen Oy no sea0 io pitt axes ii8- 

aera aes Q2 5 n 


oi 


rnimvrads f Syeo THOD Ore: ne 646i putes 8B “bi Ants 


inatnate behtesod vretiotelGaa A am h 


ents frac ego Deh) Beet 6 Rm O22 rc elle? . . 
. trier eitesiue T0) Be sd aLOTROR ¥ 
ugives koa’ mit ey rin deig 1% des feos Taam - 
¢ y4 i devia. be obxso) fava. Bre batte bade . 
eta wilbis on ot Ste TD + Fen iva of at gate leg 
ube nod Brie cr 7 
i tung btahaate boliatek ed? To Soaibd, 20% . + 
pauifhel: o' Hiveta sf mecet Bias ao% Bie 
He PA ‘nemgen tbe ebay Sotsem at etiwk 1 
. ui Der tes ed? 20 efnd ett ,shéts ans tH Fy 
y sa ‘ ; ‘S gai phaase ts att; addy ceiw abe mt ; 
4 ‘eo | ee htedd. se% iN “Yearly bo. 12a0 
ty OS: gta LERt'T sity of auibeel toe tien s 
aul ; f vad ano Yet sequty ods “Sa Feeo 4 (Afos ear bits 
reds ,Paee so kte opty ie f 3 yard ie a 
j ‘an? Bao bacdy Seem 4Anees oa? of aich6 
oontmin gust ho erty vos Set eey boqene Lo. 
ok 
Elin peoieq ut forrad aud et @f elecd) efi). etto +07 eno bout i 
rie TTA 43. Biao a0 Bate sot gohan ef Reserve os 4 +o NtSwohIn ot ait 
; i + to wedewe aft paewol Bf eevee hie God, 164 one 
OY walbued | Bolte donswotia’ sce bees buco Tee eateeds ame 
onl? eG \ teetad sok snate Do Feap gee std bap ‘fate 
° f st mat nol ouheh 6 oe fatto ah't enngwo: £ ah 
ried 1G BIuss Tetamaigh jo bangit 2b pol tetoge. rw nog ‘ 
‘ cutec ¥o% cvuodt? gem betehicnod ad biwecde soide esn00 a 
st aubbast ,leriad “eq. FA0" brabrata 26 Autites oot! a4 
» Fupe Zink aot ROOL to shoe -aiud erly of baa grstiadayil 
States yuotsopetaaua, ath AbL Mok, Seeks Bere se otf 0; 
oats. save ttrh. 10% so7169 ead cane bae ue Letaved od vam we 


iL: ameeqxne wiki {ar ,BFeee yin zasme Lgate 


ahdGd0 £a8¢ shsihahcharhie: on, stint 


had wt: Mae oD. Gey med br tabunsit erarmaa aus at 
ete to ted pee » ddeoedd bus etap ety ° .dioted ”| e 
cofedving ott espotedt- ey eta? 44 aeitas “prensa 
~% ‘ettoord “wl? ROOF Te ettia vig ef? af er 

ei fe27it to} wta Hass wl ot neaitata aoe 4 
sarawolls | sawt) Ob ett” ¢ SS fon geo LE lit . pen 


ry 


giagd«Lesiad hashes rat aif, aie paved Rina one oh sa st 
‘ J a" rs my 


9 tal 


7 dak i asl Rie mer call RY 4 


leading to the total allowance for clears and to the standard cost of "less than 
196 lbs." of a certain percent of patent. To change the "less than a barrel" of 
patent to full barrel of 196 lbs., the "less than barrel cost" should be divided by 
the percentage represented by the extraction of patent and multiplied by 100. 


To the cost of 196 lbs. barrel of patent, provision is made for adding the 
Supplementary costs for containers on the basis of two 98 lb. cottons, and any 
freight on the flour to destination. This leads to the total cost, basis draft car- 
load deliveries, at standard cost of operation, but including only the regular 
office costs for selling. 


To this cost may be added any additional charges for outside selling, 
such as salesmen's salaries, expenses, commission and brokerage, leading to a total 
including outside selling expense at standard. The outside selling cost per barrel 
will be calculated only on barrels so sold. 


When the product is to be sold through branch offices, the branch office 
cost per barrel will be added. MThe branch office cost is to be figured on the quan- 
tity sold by the branch office. In other words, for figuring branch office ex- 
penses per barrel the total budgeted branch office costs will be divided by the 
budgeted number of barrels of flour for the branch, leading to a branch office cost 
per barrel at standard. This is the rate per barrel which will be used for branch 
offices, and not the rate per barrel figured on Form 2, which was on total rather 
than branch office basis. 


The next item is the total cost at standard, to which is added a profit, 
leading to the selling price or quotation price for the conditions indicated on 
each individual supplementary card. 


To summarize very briefly: In the preceding pages we have outlined the 
uniform method of handling offal credits; the manner of separating the Grain 
Department from the Mill Department of the business; the procedure necessary in build- 
ing the budget and securing actual costs; and finally we have illustrated the way 
in which the budgeted operating unit costs should be used in compiling the daily 
cost cards. General accounting methods are dealt with in the following section. 


aac 


stHho) Sartor ats OF wheel aie tink dents oh oF: sno f 


rey © “< 7 a 
Als ¢ ar op) fi 
t : ere a) rs Lees 
Sco, lpia Dial 
Citas i (ge 
| eran a Lut 
iy or) a ey iat 
a * iy 
fl ‘ s (ar 
24 





































wet Yeo 


ees Fesabsata on? Of bow wen sft ae Sapte, ‘fasornen 
Gly A884." ot? eaande AE). .TReeeg) Te JESOTRG, he ide 
ORS. Weow LOc“ed, aos Beek” vars go hed pel Us fet 

qivize piu dastea to gokisathes wie va sé take oad 


mM af notelvotg | aReIA Wei hesttet .ods ees : th spoke 
On adi Bt 1 ko wfesd ear no ATONE GIO 107, ee 


LG “git st Aaa a FROG. Hiss tts de th 
ath £06 *¥ 


: Re 4 ihe ‘% me: FS SF, a ed Toa Teo a 
at ¢ Hae molvpiioeep “sexzesdéare RO J THhL AR ae P i 
nee aa Mme OR rh ove gD! Gel ieee oti cee 


(2208 Of ELSRI SG Ge Vigo Daan 


‘ t) S65 oe ant nt. 
“ f 4 Pi bt ~oos” ~ 
, J 
fro enitte HAG : hud tates. 
¢ uA * & ‘ é cate 20. # 
} ; Té i gicey 


ivécw \S matrel Ge Bstielt i659ed ned wes % ed,’ 
iaad +o 


aw OF =~ bteD © on tedn Tages eit BE pee pe 
Sats: O% ovlta aollezeme) to. eelide gntiled 
: o O4BD 1, ken Se a ze 
aa 

' . (ri f4eted Trav obbene uy icy i 
3 oO TSMMIIaL, Ot rene le®to ist Linas ‘te! 
Oe Ore Sty } -eeentend, eas 2o depth in Lith 5 ect a 
‘6% ov vilenk) bus ¢e¢reoe Learns 8 Bs tuDee bist 

vu hh Beau ed bioote nyeeo 2tat gotteraas + 
urd i GFie wh die gbatiten galbitavegsr Laren < bei 


is 


yn 


1 i 
‘ 
. 
Wii 
far 
“ds fa 
1 U 
: n il 
t aes 7 
ah rd 
men, Sal 


GENERAL ACCOUNTING 


To this point the records discussed have been largely in connection with 
cost accounting but from this point forward the discussion will deal with the 
method of handling the ledger accounts and bringing out the monthly profit and loss. 


It is important that we secure a high degree of uniformity in cost account- 
ing details because only through strict uniformity can we make acceptable cost com= 
parisons between plants. When it comes to the general accounting procedure, how-= 
ever, uniformity in all details is less imperative. In lining up the accounts and 
the procedure we must be sure that the distinction is made between Grain Department 
profit and loss and Mill Department profit and loss, but beyond this, our concern is 
largely to insure that all of the elements necessary to the securing of a complete 
picture of the business are properly presented. There is more than one way in which 
the details may be handled but the plan outlined in the following pages is 
recommended as being simple and effective. 


The business of a milling company comprises both open and closed trans-= 
actions. Among the open transactions are purchases of wheat in the form of open 
contracts "on track and to arrive", open futures and unfilled flour and feed book= 
ings. To these, under this system, must be added the commitments of the Grain De= 
partment to the Mill Department; that is, the unfilled grain contracts. The closed 
transactions comprise wheat purchased and on hand, flour and feed in process and 
Stock, flour and feed sold and shipped and all other items of out-go and income 
such as are ordinarily recorded in the general books. In most plants it is diffi- 
cult to get a complete and satisfactory picture of the current status of the business 
through ledger accounts that deal only with closed transactions. 


By way of illustrating this point further it may be wise to recall that in 
the previous pages we have pointed out the difficulty of "earmarking" the grain de~ 
livered to the mill as applicable to any specific sale, and have provided that the 
grain shall be charged to the Mill Department at prices based on the grain con- 
tracts, taking them in the chronological order of their booking. 


The Grain Department, during the month, may supply to the mill wheat which 
has been purchased at higher or lower prices than that bought to cover the grain 
contracts according to their booking order. In other words, the cost of the wheat 
delivered during the month will not be Strictly comparable with the grain contract 
value as charged to the Mill Department. Similarly, the mill will deliver flour in 
accordan with agreed upon dates or to suit the customer's convenience, and the 
actual deliveries will not agree with the order of grain contract bookings. Hence 
the month's cost of wheat ground and shipped, according to grain contract bookings, 
_will not be strictly comparable with the month's billings for flour. If, then, the 
profit or loss is based on strictly closed transactions it will be fluctuated up or 
down accidentally by the influence of the open transactions, The above is true, of 
course, whether there are two departmental profit and loss accounts as suggested, 
or only one, 


This is a feature of flour mill accounting that is met, according to 
rather widely accepted practice, by the bringing of all factors to market on the 
dates of "cut-off" - usually at the end of each month. Under the plan outlined 
herein the ledger accounts are restricted to chosed transactions but the open trans= 
actions are recognized as part of the monthly profit and loss statements. These 
Statements, treating both closed and open transactions, give a complete picture of 
the current standing. 


With these general comments we may proceed with a more detailed descrip- 
tion of the accounting plan, 
-14-— 


. 
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yaruioo sth (howd: cand ove, beans orig serouee a he eae a kala 


bee” bas lee of hfoeda yee. of ebgaat tam eae Baar ye 
vig as! o® fanss eadlag de saat Lee eae forged ay 


Git), He ech) ;ebsow vedio ob, ORRe Bolisot {ieee eae oe 


evil ooh fil £¢ bet eid oe rad hide Sa teed Bere ee We 
yon indwron RA TeMOT BuO: Od ca) OF SO) Coe: ages nesta 


i huh od oie, 2a. te seared wey) wal hoe 
hed tihitl'g td ‘9 otaathe \ ‘gc Antes Kone To rvs. vad $3 
nt WD rie ed $ eased hotg la» of! hodoke 

neseteda cued ben theta bh ade ng “ath, 
Uieiwoo £ ovata a sane eos fae 





4 a 
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; t ; = ; “iP \ 
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ra 


Tool AE Pel teem & cle oe 19% Seaton: en aR Suet 

t Video) Od TiO Beso h ie aie: PIT agoR, OMe: Loew whe 

ee 

eh OPT OTa tea To an ribet a ver eA om Sarr: bvabroaak R) ey 

ee bovine od 4nhix aw ool. Oy aie 65 bate fata tab eine! ‘eduuaee Re 

Pat Gee TE oa! Laveen, Pe: Ge MOLI fi) Rae ebay) oe wre 
old qo pola. of covarewegiiacet ei ettateS Eigse oy if 

a) weow? obi Bl Goi TOR eRRRe orld VARS Grin ed ae 9 @ 

. rom Sue sot Bie Weer todd teeed Lae 

ots oF} yoanesek Oettenolse ghd te tia sad yp? 

tea! oh) aractl He bq “LLmeopag ote DEGREE 

Untwotiu® sens. ah ork SFee fe ke oh iol ea eee 


i doubted ities sole ie ae 
SESW Th Ree ees NO AR Ee heap ath 
t Bak Yc; PERE, | » _ “Overs OF Bie; ae 
carn PE woh bite: Ot fa pice ,wecsaye Ohdy nebud: 

Tat f Ce wary FECT, 4 eI eeeO, ah) 


a - 

ee ‘ uo Das DeUEieue 
‘ t * Wret 

Z i \ j y XX 

ca | hoe 

eu’ i o Ss) 7 i rans & 

v ite ‘ hy 
i rer ry 1 U ' mie hy A ry J ' ! if 
a | ‘ Pe. : } ria Pas ae S 
+" 7 < 7 
t 7 = - het, os WATS, 
S| 


i ae pent ee Ele! wet 2 Be et ce, AT ie y als 4 ee 


brid. 


nbtieot ‘t*Leit Soe teva faudao Leto’s {ey an? i bist 


tb oo < Yee yi ) aati *$ “ a * 
hae eo 2) OS eae int) pigeon om) : ae @ Bes ef ect tee Bt 
P five bse ol «+ peut 7 Poor es | ) ae by \s eat ’ ’ Ae Pay 
"’ Die ANNA pS @ Sighs wu 4 mel awed ft ‘ug 1809 4 10 me tht Bg De 


ents, tlw eldaneuon ¢lyahita ge Seer Oe ie, deme 4 Ba 


eh PG OREO DURBIN RO. eRe Ore te We -O4'T! 1a POLS itty 9 

bl si dding mthyeoda’ . baqa ite brad Rett timc 0 a 
Ray eton SoS nant ihe Avia s AS iam acer APE eh sieges a wid “ 
acy Reser y ry 4g Vitawitse mo: bande s. 
gyda. wit’ «ume soecdnn te wagoa mits: ben Oot, hat Bit? 
a4 Qeatows aot baie Pot bes fetid na cwt ora, 


ee ee a ae fF 4h 
1" he a a 5 wie 


Seg TE a aR S ali Sipeatee & Sth 408% he, outs ¥ 





ad 


Ledger Accounts 


To begin with, the ledger account titles are aligned on Form 16. This 
form suggests a plan of account numbering which will be found helpful. At the top 
of each column is a capital letter and at the left of each section is a number for each 
line. The account symbol is determined by the column and line. Account A-1l, is 
Cash, A=-2, Petty Cash, etc. 


The list of detailed expense account titles has already been discussed 
in connection with the building of the budgets. This list will be found on Form 4. 
In addition to this we have provided Appendix A, in which all ledger accounts are 
named and the debits and credits to each account are described. 


Voucher Register 


Before discussing the ledger accounts further it may seem wise to show 
how the various items of out-go are gathered so as to form the basis of the charges 
to the operating accounts. All charges are first entered in the Voucher Register, 
Form 17, whether from bills and invoices, payrolls, salary rolls, or what not. A 
separate column is provided for each sub-division to which many charges will be 
made each month. The miscellaneous column provides for sub-divisions for which the 
charges are not frequent. 


It will be noted on Form 17 that for each distribution column there is 
also an adjacent column for account numbers. By the use of columnar "recap" sheets 
it is convenient to analyze the charges in any column at the end of the month and to 
summarize them by account numbers. When it is desirable to have sub-divisions of 
the ledger accounts, a sub number may be added to the account number to indicate the 
subordinate title, sheet or card. 


The total of the inventory columns will be posted to Supplies and Repairs, 
Wheat and Containers, respectively, and the total for freight will be re-distributed 
as charges to Supplies and Repairs, Wheat and Containers. Accounts Payable will be 
credited for the total of all charges in the Voucher Register. On the left side of 
the sheet provision is made for entering the payments from the Check Register. 


The entries for fixed charges, supplies and repair materials, where same 
are issued from stores, and any other charges not made from invoices or payrolls, 
will be checked off the same as if paid, but only when the proper journal entries 
have been made debiting Accounts Payable and crediting Depreciation Reserve, Inter- 
est Reserve, Tax Reserve, Insurance Reserve, and so on, for any charges made in 
Voucher Register other than from invoices and payrolls. The total of the items not 
marked paid or otherwise checked should correspond exactly with the file of unpaid 
bills and the balance of the Accounts Payable account in the general ledger, in- 
cluding any accrued or unpaid payroll. 


Graphic Chart of Operating Accounts 


Form No. 18 is a graphic chart that will serve to give some idea of the 
methods advised so far as operating accounts are concerned. 


It will first be noticed that the distinction between the Grain Department 
and the Mill Department is maintained through the introduction of two ledger 
accounts. In addition to the usual Wheat account we have a Cost of Wheat Sales 
account and a Wheat Sales account. The difference between these two accounts 
represents the Grain Department's profit or loss. In the Mill Department we have a 
Cost of Flour and Feed Sales account and the difference between that and the Flour 
and Feed Sales account represents the Mill Department's profit or loss. 


nae 











































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Ye vote & of walvded done Se Se ees pete ean 
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a Te BO ‘sq rth. awa % iva eft auliei@a Ag ere et bo igi i 


ary : i 2 lodtia .penadiio Gant Tae sy” ae 

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iia Lae Bo nbo rites if tom vices toh aaa ctf aa eee ete 

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i aban Nard vote. te ews pe Se TOR emesis penne: 


» has ides? eo tated Oa eth lovey tay, 2aclowes Bers rheargs wnide’ 
Wash MI OLLI oth doyle Stam | Aaterls eethod, BEOmre Saree ine Pees ahd a 
eRe Las ao eck th FRAO OL cries rer A aie bi moral 





wrest fete drcts irate attend 4 a j La ys 
ebay geesid ane a eeMO vee STAID. ae, BR 


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Pee viet eny daw fad oy PH aes rete teehsamay 

sano oes ts ent suntan age supreme a ty 

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ATOR Be he ee eg i]: “porate tty. 9 am 

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he OF eee) Sp. Pets haiiens 


era dp 
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The second point to be noticed is that the debit to Product in Process 
and Stock account covering the month's operating cost is made at standard units. 
The credits are to control accounts which are directly comparable with the related 
accounts which carry the actual expenditures. The difference between the stand- 
ard and the actual expenditures goes directly to the Mill Department Profit and Loss 
account. The bringing out of these operating profit or loss figures as definite 
items will serve to focus attention upon then. 


The carrying of the goods in process at standard operating units means 
that the Cost of Flour and Feed Sales account conforms strictly with the related 
daily cost cards so far as labor and expense items are concerned. fThe account, 
however, does not necessarily conform to the daily cost cards in the case of the 
wheat cost: Any discrepancy in this direction is taken care of by the bringing 
to market of the Mill Department's open trades as described later. 


The two accounts that deal with open transactions, namely, Grain Open 
Trades to Market and Mill Open Trades to Market are given on this chart although 
they may be left out of the ledger at time of monthly "cut off" if desired. As the 
‘System is outlined in the following pages these items appear as part of the monthly 
profit or loss statements only. 


Determining Cost of Wheat Delivered to Mill Department 


We now come to the point where it is necessary to fix upon the basis of 
calculating the cost of the wheat delivered to the Mill Department. There are three 
ways in which this may be done; first, by pricing the wheat delivered during the 
month or on hand at the end of the month at average cost; second, by valuing the 
inventory at market; and third, by calculating the inventory at cost or market, 
whichever is lower. 


The simplest manner in which the charge may be made is illustrated by the 


following formula: 
Quantity Value 


Inventory beginning of month at mark€t.ccccccescccccveccccacs bu $ 
Maloaded during the month at coStcccccccccsccccgecsvdecceccesece bu $ 

MMM Leste dha Se uis ais’ eiaislc' odd s’ele aise «islahita's oleisie'aa ars teiw Wide svie's eae bu $ 
Inventory at end of month (at market). .cceccccssccvesecrecvcecers but: ee 
Difference = delivered to Mill Department....cccesccesessceesee bu $ 


The use of "market" value rather than "cost", even where cost is lower, is 
justified in the above formula only in caSe all other elements are brought to the 
identical "market" figure in succeeding computations. 


When the above valuation is made on a cost basis rather than at market that 
course merely entails the bringing out of the difference between cost and market as an 
additional element of the monthly adjustment to market in the departmental profit 
and loss statements described in the following pages. 


Grain Contract Value of Wheat Delivered To Mill Department 


We have previously stated that the wheat shall be priced on replacement 
value on the day the flour orders are booked by the Mill Department. We have further 
stated — because it is impractical in many mills to "earmark" the grain as going into 
specific sales - that the wheat shall be charged to the Mill Department in the 
order of the grain contract bookings. 

—16—- 


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y? “nae Shs eae ving ee em ; Yaak 4 , ih of 


hows A PRS Te TUR oni ct Bh eae tae bs ny + barons! 


Ise ad) Ie crcele, 2otta Jie) eten al elite wiierseks pn 
BIG DIRS MOO: abe hig OND: vine hse senha haat We 
Mee is edt eidte 1 ieed iraq Ane wR, bee Is taka’ addr | 
‘ 4a hy mag phew Ja f is WO Be tah 4 bbw ony +9 gia th sf pai “grt wail Be *f 
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‘os UN SRE ee rea eta yy hare! Tie veg ate 


In ordinary practice the grain contracts will represent the wheat equiv- 
alent of the group of flour sales made on a given date and to be manufactured from 
& given milling mixture. The total amount of wheat delivered for the month, then, 
will be priced at varying amounts, taking each contract in order of the booking date 
until the amount delivered has been completely covered. This procedure has already 
been discussed in connection with the Grain Contract Record, Form l. 


Product in Process and Stock Account 





The Product in Process and Stock account is a controlling account for 
the mill. It is debited with the wheat received from the Grain Department at grain 
contract prices in accordance with the booking order of the contracts. The off- 
setting credit entry is to Wheat Sales account. 


Product in Process and Stock account is also debited with the manufac- 
turing, administration and selling cost at standard units, the amount of the charges 
being determined by multiplying the total production in barrels by the units estab- 
lished in the budget. The off-setting credit entries are to controlling accounts 
for each of the three classes of expenditures; that is, Manufacturing Costs, Admin- 
istration Costs and Selling Costs. 


This account is also debited with the containers used. Prices are based 
on 98's cotton, in one thousand lots, plus the current Federation differentials. 


Cost of Flour and Feed Sales 


In order to determine the Cost of Flour and Feed Sales it is necessary 
to establish first the inventory value of the flour and feed on hand at the end of 
the month. There are three figures on which the inventory may be priced; first, at 
cost according to average grain contract prices plus standard units for making and 
selling; second, at market for the wheat plus standard units for making and 
selling; third, at cost or market, whichever is lower. Clears and offals must, of 
course, be valued as well as the patent flour, and the simplest method is to value 
all at "market". That is, patent at "market" for the wheat plus standard units for 
making and selling, and clears and offal at market less the standard deductions. 


In cases where the stock is valued at cost it merely means that the dif- 
ference between cost and market becomes an additional item in the adjustments to 
market value, which are an element of the departmental monthly profit and loss 
statements. 


The value of the flour and feed inventory becomes a credit to the Product 
in Process and Stock account and the account is cleared by journal entry into Cost 
of Flour and Feed Sales account. The difference between Cost of Flour and Feed 
Sales account and the Flour and Feed Sales account represents the Mill Depart- 
ment's profit or loss on closed transactions. 


Monthly Journal Entries 


The monthly journal entries are outlined on Form 19. The first entries 
cover the budgeted fixed charges and reserves and take care of any splitting of 
general charges between manufacturing, administrative and selling expenses. The 
final entries deal with the controlling accounts and cover the costs of operating as 
established by inventory, etc. This list considered in relation to the Graphic 
Chart of Accounts, Form 18, will give in simplified form a clear idea of the general 
accounting plan, . 


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Pp WOeM ood: OMT OD. SARA Ri “eae oF tae Wht iss SH (oda chy ren 

: 1d CE Od rR ype Teava gv {yiehaniou heed nately Bahan st Lede d 


we TLR "hoa a ope ee Shiites Bits. Uw ROE utiiig & bib! 
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pa x ak, Altai oy ge 
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4 4 Gy AB? . ei . } "4 4 , - ; fee mere iy i329 


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Voto Tiw SOs. Bey Mae: as 
ea ED ee EMO Lh F000 “eas de ‘Siew i % 
L ROO xt De Jex ttn" J6 the vey ei Jord, 
3h wie Ler, #eA nk kes bo bey OLS bee 


y 


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0 RD AG Wal om td RE ta, Snes alta wok de ‘be 
LD ee oa a Dee gee Sdemee vel rae Lae Swat’ Sites nae arte Pr 
die SI GR eee hato elmo Baie 


it Rag ay oa 
Ra? y Tt WRBe al sit imo “ty ‘poivtns Liars ee, 
WR ER OD ORD | Fithos, ema me Ream agents” inde: 
wh POI OTE es” Be ae ae foray mh het blag 


Wo Ty A Poe? oie, MEWS forth OM Sergiy vee. nh kLir300 em ER 
Me Ook Gy po i FG, Fiery ih Ban AiLeniga eta ue 
Bg ae, Vl eee Wired Silage Re, pee th 4: 


Profit and Loss Statements 


Form 20 outlines the profit and loss statement for the Grain Department. 
It begins with the profit or loss on wheat delivered to the Mill Department, which 
figure is increased or decreased by the profit or loss on closed options. The net 
result will agree with the Grain Department Profit or Loss account, which reflects 
only closed transactions. 


The open transactions are next considered and the statements show the re=- 
sult of the bringing to market of three factors; first, the wheat in transit (0.7. 
and T.A.'S); second, the open futures; and third, the unfilled grain contracts with 
the Mill Department. (In cases where the inventory is at cost rather than market 
the difference between these two valuations must be added to the above items.) 


The result of the combination of open and closed transactions is to bring 
out the net profit or loss secured in wheat transactions. 


Turning to Form 21 which outlines the profit or loss statement for the 
Mill Department, we find that it begins with the sales of flour and feed, and having 
made allowances for deductions, arrives at the net selling value. Against this 
figure is thrown the cost of the wheat according to grain contract prices, assuming 
delivery to be made in the order of the grain contract bookings. To this is added 
the manufacturing, administration, selling and container cost at standard, thus 
arriving at the total operating cost. 


Following this we deduct the value of the flour and feed inventory at 
market, thus arriving at a net operating cost which is finally increased or reduced 
by the variations between the standard and the actual operating costs. The result 
will then agree with the profit and loss on closed transactions as shown by the 
ledger account. 


The next step is to introduce the effect of bringing to market the open 
transactions. There are two elements to be considered; first, the unfilled grain 
contracts which have already been shown in the Grain Department's statement; and, 
second, the unfilled bookings of flour and feed. (In case flour on hand has been 
valued at cost rather than at market, the difference between the two valuations must 
be added to those mentioned above.) 


Finally there are certain supplementary profit or loss items, such as 
commissions, income from investment, and various miscellaneous items. The net 
result gives a picture of the complete operations of the Mill Department covering 
both closed and open transactions. 


In actual practice both Grain Department and Mill Department profit and 


loss statements should be worked out on monthly and cumulative figures for the 
period. 


(2) | ag 


velety foiiltau eds ,tetht :betehlencoe 6d of #3nanehe ons e186 


eitomuaged eiatD eff 40% drtenateee: enol or seterg pe prey ners 
doldw ,facwitaqe? £Lim eds ot bevevhfen: seedy wo ecol 1 SEomMm, 
tery eth .enotiqo Begole ge aaer to Shetd edt yd hbeaeeteeh ae B 
Efoeliot oldw ,savonod ctok 1 Pitot Sagueroqed oleid eee aay 


civeat bos ,heot bas welt.to gelec eff Kriw entged of tad Gary ow > 


gatavens ,uecing doatiads aiaty oF gabhrooos seodw en?) Fo sa00" ott 
habhe 2k cid? of . .2eetidood sorties gliew off to teSta eis. oe oe 


.£.0) dlecet? of teodw of? ,sarkt ;exodebt sods to seadraem aa eee 


sitd of ef auoltosansiys henols has ceqg 26 molfnaidmoo esd to, iam 

































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a2 


itt wote eatoemessie edt ban bovebbate® teen OTs anottosenatd meao i 


is yates ts 

¥ efnetsnoo state beilltias odd; ,otiif oes >oemutet nead eap, ye std 
i ‘ad? tedéat ‘Seon ta eb yrorsasenl ef? srede Beesp al): em Stag 
(,omes2 avoda eff of bebhs od. Yau atelveutsy owt geady 


»2noistosansth Peedy of Seneca eect ae 4 


add “oh taomelave evol wo Sitong eat geaiisueg dokdw 6S eriol oF3 


wish? fenissé .eulav gatiiee Jem eds 28 sevigag. .caolvoniep sot 8 e 


eed? ,htebhanse Ja L200 soaciatagd bas ear 


tt notserselmimbar ,goe 
y sean Baise segs intone 


fA wretnoval best bas <0lt edt to onlay ef foubeb or etdy 


Ba ile Ace oe F sreo torts ¥v £4; sty ? ¥ EE ba dori Wf fe0° urtt farsgo Jon rR ta gal. “ . 


meet edt  .ath00 nnitereqo eee afd Die btabmada ed? neevved 
eis wi awods as enotisezaats Seaglo oo weol baw: #kloug ent asin 
geqo ets sedina of grigaind to toe%toe eth eoubowtah oF ef gage | 


sete i Joemetcte a’ dnendraged sled edd ab mpode.aved ybastles ‘oral 
gaed aad baéd no teOlLt ecne cl) «beat bas “Olt fo epciseod Bere 


im noolievlew ows ext? meeuted ssdetettio ett, jfedsam Je neds Beae + 


{ .evods. shai iy 


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tot ont amas tf ebetntintnie euoitey bate dneqgisevak wot), ° 
jaisgvoo tnowiseqed ILM ad? Yo eacliateqo afaiqmoo edt 20 etudi o 

| -eqoiicqanand 1g 


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hie $itera tuomitsqed LLIN baw Puesmeteqed aia seal entte t 
. t uotmt? evitetimus fae vittnom no tie ida ood of 


CONCLUSION 


The main structure of the uniform system has been outlined in the preceding 
pages; there are, however, certain supplementary features which may be of interest 
especially to the larger mills. We think it unwise to burden the Manual with a 
detailed description of these supplementary features because the needs of individual 
members differ so far as these forms are concerned. We will mention three of them 
briefly, however, in order to indicate that the Federation is in a position to offer 
suggestions along such lines. 


Wheat Premium Analysis 


The mill that grinds a variety of wheats is likely to find that it is "long" 
or "short" by grades, and as the premium for cash wheat varies by grades and varies 
from day to day, it may be advisable to analyze each day the effect of the fluctua- 
tions. 


The procedure will be to build a record of the quantity of all wheat on 
hand and purchased to arrive, tabulated by grades; together with a statement of the 
various grades required on the unfilled orders. These two statements bring out a 
series of daily balances showing the "long" or "Short" position by grades. To show 
the result of premium changes all under-sold or over=-sold wheat will be calculated 
‘at the amount per bushel of the difference between the previous day's premium and 
the current day's premium; thus leading to a daily statement of loss or gain due to 
premium fluctuations. 


An example of the method of making daily wheat Be ae analysis and of 
the form used for this purpose will be found in Form 22, 


By-Product Analysis 


In building the daily cost card it is assumed that there will be a bal- 
anced condition between the sales of patent flour and the sales of by-products: This 
balanced condition will not always be maintained, and it is advisable in many plants 
to have a running analysis of the figures both as to tonnage available according to 
standard yield at cost card values = and as to sales, with assumed cost card values 
compared against actual selling prices; thus leading to a showing of the loss or 
gain over standard by-product values, 


An example of the method of analyzing by-product sales and of the form to 
be used for this purpose will be found in Form 23. — 


Flour Sales Analysis 


A flour sales analysis will of course always deal with quantities either 
in totals, by salesmen, or by territories, branches, etc. It will also deal with 
selling values, and with gross margins or with net margins per barrel, in the way 
that lends itself most acceptably to the individual member's needs. 


The purpose of the daily analysis of wheat premiums, by-products, sales, 
etc., is to give the executive a daily showing that will be up-to-date, detailed 
and comprehensive. The cumulative effect of such figures is in many cases now known 
only at the end of the month when the results are bulked or averaged in the profit 
or loss statement. The idea here is to show the figures in such a way that they may 
be scrutinized individually and promptly and thus lend themselves to executive 
control. 











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PeGy shteihoig-vd ‘to caiee eff Ses syokt tnesad to Betas etd aneeted 
Hokie vier ui eiducivba at 2t bas , beatin hale ed. evyartia tem Lite aotst 
Of smi iotgpsaA 4! leva omen; v2 ea. Sfoed pinning guy to @feylene pe 

el fawiay o1a® thon fheavaes atie gf Ri ae oF 2B San = gasilavy Hres,.teas sacl 

Mo a20t aft te antvode o oF aclbned ‘aged ney iq naliier Isules ¥ 
entev: dumboignyd ia | 


nateie ealiiionep déiie faeb pyowle sanes to side @leyians aatnn 30d . 
(aie fg9h tle ilblw 3Y sie ,gedeneid. .celrosttig?) va) to eee 

ww ans ol ,terted soq atigtens fou dife te salgiea agotg) dake ‘hewa 

‘ ot hbéea t* sods a8, Lauhiv 40s £ git Li yidas¢esoe 130m | 

eles  ,Riotihbow-vd wanes Lena ia faery Ye efayteaa viin’ ad? ‘te re or 

he Paice atinh~otqday od iiiw tad? gabeods vyiieh 3 evitaoexa 

wok ven zexag yous al et esrugl? secs to soatie avis loa, 

di tour ods. 02 bogsiewn so bedkud eae erie és ent morte dome 

y yre yet) tude yew ow coon wk eeruget add @nda. of Be 

fo. av heebxe Of peri grmetl? bret Riera Pak, a % 


, aay ‘a 









on 






c 
x 


An example of the method of making flour sales analysis and the form used 
for this purpose will be found in Form 24. 


Vital Factors of the System 


To those members who may hesitate for any reason to accept the uniform plan 
as a whole it may be wise to say that the various features of the system are not all 
equally important. The first and most vital step is the building of the budget, the 
use of the resulting standard units in the compilation of the daily cost card, and 
the reporting of the budgeted and actual costs periodically to the Federation. 
Beyond this it is also highly important that members separate the grain purchasing 
from the milling end of the business in order that the speculative profits may be 
distinguished from the profits made in manufacturing and merchandising the flour. 
Members will find that their existing systems may be supplemented by these particular 
features with an additional amount of clerical effort So small as to be negligible. 


In connection with the general accounting system it may be well to 
emphasize especially the fact that the contractural features of the milling busi- 
ness, both as to purchasing and sales, are of such importance that open transactions 
cannot be ignored if a complete picture of the current status of the business is to 
be secured. This means that the most vital factor in the general accounting plan is 
the provision made for the bringing of open transactions to market. However, this 
is a feature that can readily be adopted in connection with existing systems even 
though such systems do not agree at all points with the uniform plan. 


Finally the system as a whole is offered to millers in the belief that it 


is simple but highly effective and that it can be operated with an amount of clerical 
effort little or no greater than that required by most existing systems. 


20 


co), 


Lo 
ae 
en gs ieee ee 
eaess) 
we 
ta tte di 
oe Bee So. 
data Sy 
eer 
oeve 
ee ay 
* F | Y 
} ET 
saghya 





¢ % 
a, 
ae 
“> - 
r Tae 


‘de minig wos elormoge etedmer sant eon e jogiek: wlohe tit ois: at 
e4hinrq evifnlvoegs ef? tady wAte ah Adonland en? Ae Hdl 
ect yoke (basdoevem baa aa laid eee A 08a. SI LLOSq ante 


» Bx) wel LP 
ne ; fy ee i #7)! ine, 7 a7 ' wae 
a i 7 . WG 4 
' ot Ap ALY = sf 
4 ie \ na f 
iv ; MAME hl? > vad! WR trae } 
: ; aR athe iv n 
: 14 a yee heals “Day | 


pat! bas elaplans sated "igre itt afidiis we bad te. dr uP re 
| sk wo ah baci ot S8hN Hog 


af 


et) Saas ty) no aetisne% BUG IR, ast sade yan ef) sate te on 
Foe to guibliivd ots at qare (este ieom bas Ferree wey 


rao ELioh eft to aetieliguoe what #2 te peabeee, baevcte 
pet et? e¢2 yilsvihetveq’ etsod gate a Sie be toghue 


ninsaeigqaus of Yiu qwevnre pasteind viet? s . 
ais at of Aa Linas ot cokes [ehinads te se pee 


oJ You JN moteve peliaiopes Lataced oss déiw aokse 
slitwe ait to eeautee? Laviidatiags of? said son) ets a 
ree dey! Seed soraivodal cevg to vin oe tee hens went rerioroue 
| OSs To cine sree ORD to) erutatg, egetenred Bae 


is OS TOPSRE hariy Seon ems Pat? ae 





Ie 
« 


“ — “2 y ~ re ne % Sore J * 
j Pik re rere i 9 4 4 ® Eo : a » e 
engin 2 vento, Gis Rs ei GOT ii Fe @ +THS. JOR 


led otf ns erelifa ad betel lo, th efom Be es 2¥e woe. TE 
fusoss me dtiw fetaredo ed- rao, 2) Jedd Bae ev ites tte, vite: 
(HMoreY2 gottuixne teom yd hondupst fads ged?) setset oe 



























(Grain Dept Sales) 


March 1 


4 

5 

etce 

etc. 
Total for month 
Adds 


Unfilled sales balance 
from previous month 


Deduct : 
Grind for month 


Net Unfilled Contracts 


Note: Set up separate contract records for each basic mixture, 


GRAIN CONTRACT RECORD 


Hard Wheat Sales 
Total 
Bbls. 
Flour 
Daily 
1500 
1000 
2000 
5000 


7000 


16500 


25000 


41500 


25000 


16500 


BON ee 


Est. 
Bue 


6750 


4500 


9000 


22500 


51500 


74250 


112500 


186750 


112500 


74250 


(Mill Dept Purchases) 


Mixture 
Daily 
Mkt. 
$1.01 


1.02 


$1.018 


$1025 


$1.0222 


$1.025 


$1.018 


Form 1 


Amount 
$6817.50 

4590.00 

9270.00 
23400.00 


51500.00 


$75577.50 


$115312.50 


$190890.00 


$115312.50 


$ 75577250 








v 


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th it 
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me ee a Deca a os Pate By v4 
COV LAAT: CLA. 
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ea toatl fem fee at afe i gla 
i tea CEM (ne hee Iget ater): aie 
; Rs | Lae i ay 
‘s oe . oy ‘Te i nd ie ip 
CHa lion Jee! bytes, } : ih, Sie : 
eiadiein dicaidila aieamaiine ahthind ieee ieee) ‘ : P 
ASC 
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3 iy vf 
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ia . 
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f ‘ if } ag 
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Ye = 
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i 


finde te Tas 


MILLERS’ NATIONAL FEDERATION Form 2 


COMPARISON REPORT 





























(CONFIDENTIAL) 
Re te eel lek ts vAddrostiues) fog SINT oA Swe van OO Re : 
Penner oixeiVionths! Period Ending... oe ee Bbls. 
Budgeted Output Same Period... ... ee a eee, See ei Bbls. Actual (Output Same Periods 03s ccccicat eos hee 
Budgeted Percent to Capacity........... I dead le Dees I LO Jo Actual Percent to Gapatity.:. 20 Jo 
SEC. A BUDGET AG RU AL COST VARIATION PER BBL. 
MANUFACTURING COST Amount OV sPer Bbk Amount Per Bbl. Gain 
: Elevator 
ee andi Of 
Power Charges 
Mill and Elevator Labor 
Supplies and Repairs 
General Manfg. Expense 
Total Manfg. Cost | 
SEC. B BUDGET AGUA COs: VARIATION PER BBL. 
ADMINISTRATION COST Amount ; Amount Per Bbl. Gain 


Executive Salaries 


Clerical Salaries 


Traveling Expense 


General Admin. Expense 


Total Admin. Cost 









SEC. C BUDGET AGITUAL GOST VARIATION PER BBL. 
SELLING COST Amount Per Bbl. Amount Per Bbl. Loss Gain 


Supervision and Clerical 


Traveling Expense nae 


Telephone and Telegraph 


Reserve for Bad Debts 


Advertising -- General 


General Selling Expense 


Total Office Selling Cost 
Manfg., Admin. and 


Total Office Selling Costs 


_*QOutside Selling Cost 


Manfg., Admin., Office 
otal 1 % Outside Selling Cost 


Branch Office 
Selling Cost 





Grand Total Manfg.,Admin. 
& All Selling Costs. 


* This total should not include Branch Office Expense. 99 
Pe woos 



















ee a Tt 


(SAPPHIGIIMOD) 


| a ae bec ul andi AOU Nl le a 
eld i Ih it ea Lee ia HEE Bria 


wiht r | hats smnee svete) Jeary aot AS red alee ee 
ra ¥OeQhD Af Imo LebHA x pabt eke Fs 





Ce ee a —_ eee A Ren At Ort A tee det » UR Wane «I 
SAG HOV AISA Y TED) IP ; TRAHaY ome | 
a _— a oe Pd roll ie es. | ae ae pa oan eees 
a wo. fe ash inomA 8 34% Tdtupirh, 
ro tne 
* ~ , gat 


me ea te 
aa ear 





} 

| 

‘ 

Se PD AA CFLS IASG fo rece moore 

; ; 

. ; 

t 

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Se ee een ee oe ‘ OS cee et omega 8 Se Ae | ONE wee ROS te oem OR I AB 1s pe nee 4 ange 


~* q — ~~ . . “ bs | 





2 ——a o es a ——— fy es Set ee ar ene ee Oe a Se ~  EE A 0 nena es 
oe o - nes ean ed —_- tens - ~ ne “a ht. 9 <a entree neta — Aen Oa one EE pe 
ye velo Rey wnis 8 ‘ ee , rm, tn 
hia a. I ; Lvs f, Ta yvIUE 
= bap es eretebhimiibien : ar thie nenide~ichdindrs 


ee here Orernieerecdt A 1 “et 


ile a Adee kg lp Ot Mme aayhy My Reyadeknd a 


} , ! y i“ , ' 
it) ter re : ' a4 : react fA 
= te | semeemcnancan: es seems Et ae 


4 

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: : 

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| 

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} ' 
one ; 
} H y 
; ! : { " 
: : { ‘ 
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te ernie eee o- — 2 ° An Ag me cenemendtindninmenseenl lnneane tebnenemmemmemenienes 
; 
? ; ; 
twas a —" ne ee eee - a 
eT = GSP 8 th ewer note hata aration St 
ea : hl > en) . 
Ws Me VE AVS ie SoMa 





a = ; — 






Parse very fh 


Rn IR NR Ee eee 
te tne = tere 


sa idkie Loa aL tee Tene LA RNAD hm ee oe 


an 


we terite thn gate mer eernatipemaon manny enhaste te! sf ee er is 


BE nh he aen endo JO Oe rat ore NRE MN hh may SON ELEN A ANN A 


. 


=e 


BUDGET OF FIXED CHARGES 





V ALUATION 


FIXED CHARGE ITEMS | TOTALS 





| 
AT DEPRECIATION INTEREST 
Cost INSURANCE 1) TAXES: ie VE 
RATE AMOUNT RATE AMOUNT MONTHS 
ee ee a ee = = 























’ Land $ 
_ Storage Tanks $ : yo | $ 
Elevator and Mill Buildings | $ 4 %o $ 














. Elev. % Mill Machy. & Equip.| $ to $ | | 
ee achy. 8 Equip! ES A Oe eae ne 





Power Building $ | fo | $ 


Power Equipment $ to | $ 





Difice Building $ % | $ ee ee aig 





~ Office Equipment si Jo | $ 








Auto and Trucks of %| $ 








Total Fixed Investment $ Rammer yee he i ey $ 


_ Estimated Total Depreciation . $ | | $ 





Estimated Total Insurance - General $ $ 








- Estimated Total Taxes - Real Estate | | $ | $ 











_ Estimated Total Taxes - Personal $ $ 








Estimated Interest Charges 








Bills Payable 







Bonds 





Total Interest 


Miscellaneous Items 








Compensation Insurance $ | $ 











Use and Occupancy Insurance $ $ 





Life Insurance - Mill Employees $ $ 








Life Insurance - Office Employees $ $ 





Auto and Truck Insurance $ | $ 


Grand Total 12 Months $ $ $ $ $ 








; 


' Grand Total 1 Month | $ $ $ | $ $ 


Analysis of Monthly Totals 





__Manvfacturing Expense Depreciation \ | $ 





Auto and Truck Depreciation b $ | 








Manufacturing Expense Insurance - General $ 





Auto and Truck Insurance $ 








t . ‘ | 
- Manufacturing Expense Taxes $ | | 
Manufacturing Expense Interest | $ 


General Manufacturing Ex. - Compensation Ins. $ 





—eneral Mianutacturing ©x.-Compensation Ins. | ; eae ae 
General Manufacturing Ex. - Life Insurance $ | PORES UR cA fe oma Rea, 


General Admis. Expense - Life Insurance $ | 


General Admis. Expense - Use and Occupancy Ins. $ 




















Totals | $ | $ $ $ 













eVeyT rT] ani 


- 0. | etn — oer mn - ee we te ¢ ja a ae 


Abt ; Pei Ag “i aan sr ae, ; 
int) vs i { “ 2aza’t i stehiakh — Ae hee le 
(aan rune f reuial tan athe Sn ts 


= wri warms ‘eh WRI Pak ad hor 


: 
i ‘ . 
z cou ee a i ph. edie naiie [ oo So ; — 
Pie 
oorcae ePaper ae RPL oe Te 
j a “ - 
e Shek ate a J 
f ‘ 
i ey * 
ike inital iene thal cil 











| oes —— . ‘a 
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B . oo ee ey misor vont 
| a ore, Po ~ oom 
; | A 
t Neva % migherepuensencpenet a ee ne ne ee 
' 7 \ 
; 
: a athets - ‘ _ ——- ae i ee a enn EET ce cea 
; 4 
- - ‘ moaned or oe i ign on®, 2 a 
i 
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o~ spree <tc has 
‘ 
| ¥ _— 
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| 1 
q i - 4 * J has * oe . = ph pl yas ea 
on i) 
: re R P pra 
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P. ‘ ¥ Sigukite conti . ae : 
7 (¢ 
i t 
: s 
‘ s 7 ~ , = _ memrangemetent artleaty joergens - -~ 4 va 
4 i 
, ‘ 
j \ 
i . . ania 
: 
ot * 
i 
‘ " a - ed Cie 
‘4 
——— < - - a ee « 
- 
ae oor De — - es pantt - wp Say ene oe toners enn anita 
¢ © 
pone pactynmninagy a ry cae 0-2 yey cm eee ry eee ni — te ee Se a Se eee 8Or Nes 
2 td ed 
* \ 2 ¥ ' 
i atv ct teintirhte ais —phemnes ae een st + Omri naiere thmgene 
7 
; 
= % b 2 
: fap ane ten pS AS: en ree re sewage | cen hn ltt may tg hab A a ig i clara yl ie itt cherries tn aa in eee eae raat 
, 
i 4 . b 
; dh bn slnatien tel aa aint in cin : a. 8S thie a e a —e ve EE ee errern eaeee mrt ne ee ee eens ee eer 
7 i 
: j 
; 
{ Pe i y 1s an be — Ow ere ee 
i 1 
| ae 
5 , 
: 
; anaes See inpintareettn — . aa 
y 
if 
} ain a = 
t ell li en—shetcictacihin, | pba a * 
‘ 
; 
gue a we . er ae —- 
¢ 
; 
; 2 
NEL TS SS eae: Eg ae Pe RENAE j al 
: 
+ ee ee ae Tee ee ee eee «, ) new vor oewes 


stulsienitiientiaiabasaedatiiieasareae yttetase on 


RE ert OS Ape teat He Ae ti an 


a [ 
‘ 
ce Se en ee eee eee BS ee en dep epee A eee en gpenye an 14 ine oan ES pelt Am meres 
7 


otoesiperes mei titi hot | cohen SY 


i tah et 


i 1 





400 


500 
501 
502 
503 


700 


800 


(2) 


CONDENSED STANDARD LIST EXPENSE ACCOUNT TITLES 


penutacturing Perec Fixed Charges 
Power Charges 
* _ Mill and Elevator Labor 
7 : Supplies and Repairs 
" ¥ General Expense 


Administration et Oe Executive Salaries 
e Clerical Salaries 
u i Traveling Expense 
i . General Expense 


Office Selling Expense Supervision and Clerical 
fl ; + Traveling Expense 
* : i Telephone and Telegraph 
y . Reserve for Bad Debts 
” ,- : Advertising - General 
" iy 4 General Expense 


- 7 Outside Selling Expense 


- 15 Branch Office Expense 


apAa 


Form 4 





S wrote 
















22ITIT TAHUOO0A SeMAIKa al 


eegraid baxtt some anti 


soured) iewot 

yodad totavela hoe ILsm Oe 
exsieqen Hrs eeilyque 4 
sacoqed Laxeced , 


aoe Bex’, 
eeitaled ovitvoosd saneqxa aon 
it , 


eeixvelsa Inoiteld «. | 
vv 


' pegrogand guilevettT: 
eenmegna Lenresed . 
“4 
IeotrelD bas noieiviequ® eanequal set 
‘ eenequad potlovart 

dgqstpelsT baa sdodqeleT 8 

atded be tot evresed “i 

lazene) + goieiirevba 7 

a" 


seneqxe L[seteasd 


100 
200 


300 


400 


401 
402 


403 


404 


(2) 


Form 4-—A 


DETAILED STANDARD LIST EXPENSE ACCOUNT TITLES 


Pay Roll Account 


Power Charges 
200-1 Fuel 


200—2 Purchased 
200-3 Supplies 


200—4 Repairs 


200-5 Labor 


200-6 General Expense 


Auto and Truck Expense 


Manufacturing Expense 


300-1 Gas and Oil 

300—2 Tires 

500-3 Supplies and Repairs 
300—4 Labor . 

300—5 Insurance 

300-6 Depreciation 

300—7 General Expense 


Fixed Charges 


400—1 Interest 

400-2 Depreciation 

400-3 Insurance — General 
400—4 Taxes — Property 


Manufacturing Expense Power Charges 
Manufacturing Expefise Mill and Elevator Labor 


Manufacturing Expense 


" " W 
" W wW 


Manufacturing Expense General Expense 


" " 404— 1 
n " 404— 2 
" " 404— 3 
" " 404— 4 
" " 404— 5 
n " 404— 6 
" " 404— 7 
" " 404— 8 
" " 404- 9 
" " 404-10 


-25- 


WU 402-1 Supervision and Clerical 
4 402-2 Elevator Labor 

ul 402-3 Millers 

“i 402-4 Packing and Shipping 
402-5 Maintenance 

" 402-6 Common 


Supplies and Repairs 


403-1 Supplies 
403-2 Repairs 


Stationery and Printing 
Express and Parcel Post 
Bleaching 

Compensation Insurance 
Employees Life Insurance 
Laboratory Salary and Expense 
Share Auto and Truck Charges 
Telephone and Telegraph 
Quality Rebates 
Miscellaneous 


feptwih tea soteivragt® £-S0n . " \ 
woces, tavern ls &.-S0e " os ® z 
polis C~SOb # e 4 
Beiqaidg Aan salaoat bob Ate : " 5 
qoannetnlel &-S0e ¥ \ J . Ag 
Lowy BLO . - " 4 
et lagon bas esiiqqwe senegal § 
eeliquys L-Dob 
avitaqeh Shp . * * » 
oame gna Laredte® oso 
gatinis% bor ¢gienetiaye £ Oe ae. 
$eo%! Leotst bua: eeangedl) & 608 iv On dts tak oe 
ytttoaele & bow * ® wenn 
eorowent aolsigeneqno » +60b " ee PA a: 
epiaiweol atid eeeyolqed & «bop vy " mt 
asoagee has yinle2 yvielstodal 4 hob My bs , 
Seg7ved) xousT bos ciuA erad2 T -oh . ® 
dqexgete? bos ancoge let. 8 -d0b " : " 
eelsdalt yitlagy &@ Ob ¥ i Pinee t 
euoenelLepell OL-bOd> F eer | 
a “ , 


Aim Db CF 





BuITIT THUOOOA BaMwexm rez. ‘cHACHAE 


eA 
a 


t 


secradcxd 
L290 bes ae £008 
Berl? BOE 

etiagel bri eeblqqua €-00 

. 30qeu) &OOE 
ence wenl 3008 
aobfaioexgell OOS 

otteqrRs Iirvens) 1-008 


canted bexid eugeqxt gmk 
feeretil 1-106 ‘ — 
27a cere SOs 
fais — Somewenk &-Goe. - 
Yrredew? ~ nexsl A-OOs 


aeytedd tewol saqgeqx® aa 
xodal sotevela® Ona shine on meqna gad 

































, oF 
1 


Form 4—A (Continued) 


DETAILED STANDARD LIST EXPENSE ACCOUNT TITLES (Continued) 


500 Administration ponents Executive Salaries 


501 is Clerical Salaries 
502 " ? Traveling General 
503 + . : General Expense 


. " 503—1 Supplies 

' . 503-2 Stationery and Printing 

Ks " 503-3 Professional Services 

. " 503—4 Association Dues and Subscriptions 
* 503-5 Donations 

. * 503-6 Life Insurance 

bs * 503-7 Telephone and Telegraph 

e w 503-8 Use and Occupancy Insurance 

hs 3 503-9 Miscellaneous 


600 Office Selling Expense Supervision and Clerical 
W " 


601 : Traveling Expense 

602 i‘. am " Telephone and Telegraph 

603 - ° Reserve for Bad Debts 

604 : n ® Advertising - General 

605 a m : sae Expense 

Ws 605— 1 Supplies 

: ul. 605— 2 Stationery and Printing 
" " 605— 3 License Fees and Tags 
W - 605— 4 Postage 
" Wi 605— 5 Express and Parcel Post 
us Lis 605— 6 Mercantile Agencies 
n U, 605— 7 Collection and Exchange 


" " 605— 8 Credit Insurance 
" Mi 605— 9 Policy Quality Rebates 
Li) " 605—10 Miscellaneous 


700 Outside potting Sc ONY Salesmen's Salaries 


701 i Salesmen's Commissions 
702 " Brokers' Commissions 
703 . u . Traveling Expense 

704 a i " Share Auto and Truck Expense 
705 . " " Advertising - Special 
706 e " ’ General Expense 

800 Branch Office Expense Rent 

801 + : " Heat and Light 

802 " . " Supplies and Repairs 

803 a " " Supervision and Clerical 
804 és i "  Salesmen's Salaries 

805 : i "  Salesmen's Commissions 
806 : 2 " Traveling Expense 

807 " " " Telephone and Telegraph 
808 : " " Postage 

809 7 a " Collection and Exchange 
810 My ss " Express and Parcel Post 
811 " " " Advertising - Local 

812 " 4 " Auto and Truck Expense 
813 ‘ " " Warehouse Labor 

814 4 : " General Expense 

815 Me . " Bad Debts 





(2) - R5-A - 





 thenetsaad} A-d atod 























{heonisnoO) 22ITIT TODA RAMEIKA TBE CRAMMATE 


eotvalae® ovitovexd 


esiselaB Isotield 1 
lexena) gatiovaxT ae ane 
eansqza Laxened ai Din 
gotiggna [202 ” * ul 
guijaivd dan yoanelisi2 9-808 " ea Mm 
Rooivie® ladolase'tost 3-803 tt ft ; 
aitoliqi+cudvas bas eeati mald¢pisonmed b-T0E ® . 
eraizanod 3-208 a a % 
sompisenl ath! 6008 ® * \ 
fqanzale? Bas enodgeleT T-H08 . * 
SORL EAL youaquos) baa vel 8-ROS bg ot oan 
auoonallocetM €-808 bg a weue 


Laoisel0 Bas oobetviequ® sameqxad ga 


Ssemegqua ges lovetT : 
dqetnelet bua srodqelet , 
sided bei for evxoaol ’ 
Lanened) = gateltinevba: by 
eeteqxed Larened 7 
aeiingqwe £ ~A08 4 b i 
Bcd rh fete wreneifalg Ff +208 7 Li Af 
ugeT bas soet oepeoil & -20G sd " yy 
Ms ayadaod & -A0% ¥ . 
teoT facwsd Bae exeiquad @ -~d0d 7 on 
euloneg’ aiiidaoreM o -~30a * bi f 
Ognadone ban aotsgolied VT +808 7 by 
eoneivedl Fiber) @ «80S " " ; 
Gainion§ ysifaud yoliet @ “80d - ™ ‘ 
nuoensileow io OL-80d bd ® 


eelitelsé wo' nomaels& eenoqxd gat 


enokeaiandd «' nemeelsé si 

enoisatmmod texetoth®  . * m 

eenegrd yhilevert a nek 

saneqnad aloorl bea ofA evar? i ae 
Esiooan? - yoaleieveybA ~ " oa 


esnegeh LereneDd »§ * 


tefl mae 

digit bas taell 

atlaqgeA bab sotiqgnt 
Sadixve lO iro cofeltyvreqg3s 
| egite [ee & 'cemee Oo 
enolesioamod s'nemeeled 
eeceqxld guilevetT 
dgexgeleT bas enodqeleT 
egateol 

sgietoxk bas nottoa liad) 
feot feored bina presi 
Leeod ~ gatezs 
eeteged tomrT bag ¢ 
toded | 






ee a | 
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CONDENSED DAILY STANDARD COST CARD 


No. Basic Mixture 


Particulars . 


Wheat Price (Basic Future plus premium) 
Cost of Wheat (at Standard yield) 


Manufacturing Costs, at Standard 
Administration " : i) 
Office Selling " " " 


Gross Total Bulk F. 0. Be Mill 

Less Value Offals (Market Basis) 

Bulk Cost 196# 100% Flour F. 0. B. Mill 
Add Adjustments for Grading 

Bulk Cost 196# _% Patent Flour F. 0. B. 


Add Containers 
" Freight 


Add Outside Selling 
* Branch Selling 


Total Cost 


Profit 


Selling Price 


(2) -35- 


Form 14 


Date 19 


ls 


$XXX 


PED S¥ eer a Bee NA MP WAL, Sale GA Pe La 









BL. arvee Ne re ay te, ne 





a ‘e | i % at 
GAD T2099 GHACHATS 
RATES TERE, acca ele ee a 


. ivyes Deen PR Gay git 
. | eit | 
i i be 


s 





Form 15-A 


DETAIL STANDARD COST CARD. 100% FLOUR 


Grade 


Date 


Cost of Wheat, one barrel basis 


Grade Protein 








EENSY , 
Ree , 
‘ea ) ee 
ee ee ie. 
100 % Total 


‘i 


Freight on Wheat, Incoming 
(If not included in cost of Wheat) 


cpa ate. 
FORRES Reig 
Lbs "Bb wba 
SOB eae Hel. 


bs at any 


Cost of Wheat & Freight 





Deductions for Offal, one barrel basis 


(Bulk price, feoeb. mill, less $2.00 a ton) 


Red Dog at $ 


Bran at $ 


Shorts at $ 


Middlings at $ 


per ton, 
per ton, 
per ton, 


per ton, 


Total deductions for offal 


Net Cost of Wheat for barrel 100% Flour, after 


deducting for offal 


lbs at 
lbs at 
lbs at 


lbs at 





Cost of Operation, at standard cost, per barrel 


Manufacturing Cost 
Administration Cost 
Office Selling Cost 


Total Operation Cost, at Standard 


Bulk Cost, f.0.be Mill, 100% Flour at Standard 


Uy tab 


gfe F& Fe FE SFE BH 


Card 
No. 


: Basic Future 
: Standard Yield 


Plus 4 lbs invisible 


loss 
$ 
$ 
$ 
$ 
$ 
SS Rg 
$ 
$ 
$ 
$ 
$ 












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Form 15=-B 


SUPPLEMENTARY DETAIL STANDARD COST CARD 


For gf Patent 
Card 
Grade Date Noe 
Bulk Cost, feoeb. Mill, 100% Flour, at Standard, brought forward $ 
Grading Adjustments, one barrel basis 
(Bulk price, f.o.b. mill, less 40 cents a bbl.) 
lst Clears at per bbl. 
% lbs at per lb. $ 
2nd Clears at per bbl. 
% lbs at per lb. $ 
Total allowance for Clears $ 
Standard Cost of lbs. of % patent $ 
Standard Cost of 196 1bs. of % patent $ 
(preceding item divided by "per cent patent") 
Supplementary Costs 
Containers, basis of two 98 lb. cottons | $ 
Freight on shipment, if any $ 
Total Cost, basis Draft, Carload deliveries, at standard $ 


Outside Selling Expense, if any, at standard 


Salesmen's Salaries and Expenses $ 
Salesmen's Commissions $ 
Brokerage $ 


Total Outside Selling Expense, at standard 
Branch Office Selling Expense, at standard 
Total Cost, at standard 


Priori» at standard e e e ° ® ° e ° ° e e D ° ° oa ° ® e ® e ° ° > e e 


ide 
pObling Pric@ 2 ee « «ese e tc eee eee cere eee eae ee es 


fa fF Fe FE HM 


a 










q 4) 800 Gate trata ra 
- ; a 6 ml i yt al oO . i. ee 


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a i 
f Bars ee 
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mavordt , Sabie le Fe. ,toLt BOUL gilt ae 
| BAGG Lepr Ott. 2 Piro 
fd#¢ np ctiteo OF se6l ELIS Peat 
cern 
ret a 
r o iG og aah 
4 ~ wat § 
ty ea Ao 5 3&8 ie ae 


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. 


Z peénneced: bee aotnatye che n 


' PE Ane a asta bene Linco: 
f ie fy a. oe @ ; 


2  Pantioats Je haabiabe>" wmrstog, ona 





Section 


Section 


Section 


Section 


Section 


Section 


sz 2 3p 


3s 32:3 72 2 3% 


GENERAL LEDGER ACCOUNTS 


ASSETS 


CURRENT ASSETS 


1. 
2 
Se 
4. 
Se 


Cash 

Petty Cash Funds 
Drafts for Collection 
Accounts Receivable 
Bills Receivable 


INVENTORIES 


l. 
Ze 
oe 
4. 
Se 
6. 


Wheat 

Wheat Futures Closed 

Product in Process and Stock 
Containers 

Supplies and Repairs 

Open Trades Brought to Market 


FIXED ASSETS 


1. 
260 
3. 
4. 
5. 
6. 
7. 
8. 
9. 
10. 


Land 

Yard Improvements 

Storage Tanks 

Elevator and Mill Buildings 

Elevator and Mill Machinery and Equipment 
Power Buildings 

Power Machinery and Equipment 

Office Buildings 

Office Furniture and Equipment 

Autos and Trucks 


ADVANCES AND MISCELLANEOUS ASSETS 





1. 
2. 
Se 
4. 


Outside Investments 
Advances 

Milling in Transit 
Good Will 


LIABILITIES 


CURRENT LIABILITIES 


1. 
2 


Accounts Payable 
Bills Payable 


3. Broker's Accounts Payable 


RESERVES 


1. 
20 
3. 
4. 
5. 
6. 


Depreciation Reserve 
Interest Reserve 

Tax Reserve 

Insurance Reserve 
Reserve for Bad Debts 
Reserve for Advertising 


pak to Ha 


Form 16 





“ 




























MLSS MCRL CRAY 


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* :* 


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an | 







ertenos aaa int i 
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B yLee afl Ports 
jane ‘ 






| ated, bam tO 8 


A 


GENERAL LEDGER ACCOUNTS (Continued) 





LIABILITIES (Continued) 


Section G CAPITAL ACCOUNTS 
*" 1. Capital Stock 
So 2e, bonad 

*" 3. Surplus 

” 


4. Profit and Loss, Year to Date 


PROFIT AND LOSS 





Section H INCOME 

" 1. Wheat Sales 

" 2. Flour and Feed Sales 

" 3. Freight on Shipments 

" 4. Discounts and Allowances 
a 


5. Carrying Charges 


Section I COST OF SALES 
" 1. Cost of Wheat 
" 2. Cost of Flour and Feed: 
Section J OPERATING ACCOUNTS 
woven rayroll 
*" 2. Power Charges 
" 3. Auto and Truck Expense 
" 4. Manufacturing Expense 
* 5. Administration Expense 
" 6. Office Selling Expense 
*" 7. Outside Selling Expense 
* 8. Branch Office Selling Expense 
* 9. Manufacturing Costs 
*" 10. Administration Costs 
Sit. Selling Costs 


Section K PROFIT AND LOSS 


" 1. Grain Department Profit and Loss 
" 2. Mill Department Profit and Loss 


i de Ul 


















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UIRVYOLD BTS Ga ais 


4 
Ws ye Ss ee 4 a r: ‘ 
Pe Nr ers 6 Peco SEsant 818) 
OM Le Wee ek 
hag bons hes T *) JH95 


s- 

: 
2 
: 
> 
a 
rs 
Se. BT 
2: 


EL RD ah 
Dane Ws 


VT 
ay U ata aad es) - TSH: a 


alee) tolyaAsse bab 2g8. 
nfsed sek Lien ioe 


Cia Br 
‘yRHEat HLs5's fy, uk 
riYorl sesmirened Lo flag 


7 





? 


tL age 
w 


* 


’ 


tes 





Date 





istic 














—40- 


Form 17 
VOUCHER REGISTER 


a ————————————————————————  ————————————— —————————— 




































SELLING 

















GEN'L LEDGER FREIGHT L SUPPLIES OTHER GRAINS | WHEAT CONTAINERS |AUTO AND TRUCK] POWER PLANT NUFACTURING ADMINISTRAT'N 
= | — Zeid, 
Account |Acct Dae Acct Die Acct Dr. ‘Acct Dr. Acct Dre Acct Dr Acct Dire ‘Acct Die [Acct Dr. [Acct Dire 


Dat From Whom R ived i : : : 3 : : : : é J 
e om Receive Purpose |Folio || Payable | No.|) Amount No.| Amount No.|; Amount | No Amount No.|| Amount No.|| Amount No Amount | No.|| Amount No.|| Amount No.|| Amount 













































































































































































































































































CHART OF ACCOUNTS 


Form 18 
GRAIN DEPARTMENT MILL DEPARTMENT 












CLOSED 
FUTURES 
























MANUFACTURING ADMINISTRATION SELLING 
EXPENSE EXPENSE EXPENSE 
CONTROL CONTROL CONTROL 



























MANUFACTURING ADMINISTRATION SELLING 
EXPENSE EXPENSE EXPENSE 
STANDARD COST STANDARD COST 





CREDITS CREDITS 


CREDITS 





PRODUCT 
<r 
—_—_—_—_— 


CONTAINERS 


OF FLOUR 


AND FEED 
SALES 


















GRAIN MILL 








FLOUR 







OPEN OPEN 
TRADES AND FEED TRADES 
TO MARKET SALES TO MARKET 







GRAIN 
PROFIT 
AND LOSS 







PROFIT 
AND 
LOSS 


ee tes 
bh | 










mt nes ee : i 

ar Fe 
5 ie 

Bay, ‘ 

OL, nee sft 

” 
Be: | THAMTAATG TIM 
‘ Re Yer ee pana fuaty towdalns o1de unten oteentunepliols att hb Bie Aa 

sy og , " 
: (pe * 


j ; ! Bd shale ae 
| pales | Ro | a 

a) ‘ , 78 as ; 
ae eee bse 28 


: 
i 
{THOS 
| 
“ 


} 
a Of ' 
SE et ant 
; aus ; si i 
i ‘ 
+4 
or ke - : “3 +79 ._— 
: 
“ft 
i : : 
Lad 


fy EAL AL (ely awe tsvagtinsa| 


, 
q > Past 
| Rh Lee | } : 405 3 ke 
' t \ “ , 
f , 4 m Tht <1 4 
Pei GRANT | rae: OARORNTS) | iauy ad 
l 3 3 ra 3 “~ 
| | ath igang 4 | atari 
‘ ; ; ; 
| Bilis aN | sind L oe 
] : 


ahawity th, t: 


z " wee hemne © 
eee o2an 4: +napincnshlaniigaprinniniganshlatiie hair istaothdetia 
230088 | 


| | el) yas | 





7 
t 
i 


ate teem et vee disarray anor yy 


7 


Monthly Journal Entries 


#1 
Manufacturing Fixed Charges Interest 
Manufacturing " " Depreciation 
Manufacturing - " Insurance — General 
Manufacturing " " Taxes — Property 
Auto and Truck Depreciation 
Auto and Truck Insurance 
Gen. Mfg. Cost Compensation Insurance 
Gen. Mfg. Cost Life Insurance 
Gen. Admin. Cost Life Insurance 
Gen. Admin. Cost Use and Occupancy Insurance 


Depreciation Reserve 
Interest Reserve 
Insurance Reserve 
Tax Reserve 


This entry to set up the month's proportion of the 
fixed charges. 


#2 
Selling Expense 
Advertising Reserve 


This entry to set up the month's proportion of the 
advertising budget. 


#3 
Selling Expense 
Reserve for Bad Debts 


This entry to set up the month's proportion of the 
Reserve for Bad Debts. 


#4 


General Manufacturing Expense 
General Selling Expense 


Auto and Truck 


i i i. 


This entry to distribute actual auto and truck costs for the 


month on the basis of actual services rendered. 
#5 
Wheat 
Closed Futures 
This entry to transfer balance of latter account (debit 


or credit) for month. 
(2) j ~42- 


Form 19 


Mw HM 


- » * i ( ) ae ~ v v: “ sy aval s oe. it ; au ve | rea % 
Cf ere8. re a ARAN MR RD tO) i ata 


ty : 4 7 
hee oe he re rt ae ke 
i deh hy, ee v eae 
iy i are 0% & , 
2, kG. ry i ‘i bela ace 
1 vy A 
¥ , Lh iA : 
i 


x 7 teovetal  §— * gegtadd Ht 

x Holts ilostqged | 
% imiemed « eoamgeat 

i yitaqort —~ sexat 

ee ' fobdsivetged: 

x 2oaet seal. 

# “songineal aobisamaqugd 

% soneineanl eth | 

x sonmiuadl Oil A 

x Ss9aetbant vorsqiocd bre eal 






i 


| evrepel ao ha eee 
qviocen 4 
ereenen 


a | 


iE 


| oh 


al? to motivogere e'dtnem eg? ap tue pe 
amen 


x 2ideq pet 108 4 


edt 20 poltiroqo1ng e'dinom ed! of doe of 
| added het 4 


ey 


oh | Ait “soot am 


odd to% ado wowed Pew otve Tevtes. evudixtet of % 
‘ypotubeeet saat ee cae 

nae cae 

a es ae ag a a 


ed i i i i te 
f ore) a i 

A , ‘ es 

u % ne At 

’ @ ’ i “7 Li 

hia - iy ar” 

i SMA Fae,’ y 

ry 4 

ye 





Monthly Journal Entries (Cont'd) 


#6 
Cost of Wheat Sales 
Wheat 


This entry to set up wheat cost for month as shown by 
detailed inventory records. 


#7 
Product in Process and Stock 
Wheat Sales 
This entry to cover value of wheat ground for month, basis 


of elevator net weights, covering deliveries on the grain 
contracts — oldest contract first. 


#8 
Product in Process and Stock 


Manufacturing Cost (Standard Cost Rate) 
Administration Cost(Standard Cost Rate) 


Selling Cost (Standard Cost Rate) 
This entry to set up the standard operating cost of 
the barrels 100% flour produced for the month. 
#9 


Product in Process and Stock 
Containers 
This entry to set up standard cost of bags used during 
month on the basis of actual production records costed 
basis Federation's Package Differential Schedule. 
#10 
Cost of Flour and Feed Sales 


Product in Process and Stock 


This entry to cover cost of sales tor month as established 
by detailed inventory records. 


#11 
Manufacturing Cost 


' Administration Cost 
Selling Cost 


| 


Ee 
By 
¥ vy wits, 
. 
- « 
2 
‘ v \ 
rac ts 
LF 
om 
7f 
7 
; 
¢ mi 
ue 
s 
mia Ei ul 
Saree 
a 
~ 


hed Sa fs al Gt 


- 
i ‘ ' 
£ 4 is 

> ; : A 
#! oat Ae iv 
« ; Toe ‘ 
NOES 
fis % Tad 
4 Ate 5 r 
4 et lk ae a) ati 


{ . 
a 
oO satinreqdo Saapeaen bet gee $04 ‘ot: j 


PETA Set mot sour Uae wre ef Saylor ntasd bie 
iaupertod, Aprtinuta tte canary 6) | 0 hae 









We ; ue ' 
‘a oe: i te as 
an Ci i " tr 
ae ' ‘ *4 


3 Afgom WY Koos Jaen qlee exis 
Lotooes Wre Taayies 


ae 4 ‘s a 


Sie eee VON Fe aaiev caves ope 4 
eixvevhiok. acbhyevio ~avtatey sen Ox 
etevit rose read ge ote ian 


fetet 280) ovetinnss ) 
(elen 2200 Atay bie 
Latin, Fad. SiCHaeBTste} 


y a 


Vr 


ants (9% fevtibety wwert POOL Biartewee 


4 


int sped to eaas pashan ty Bi jan Oe oe 


vost bce aoneifl nb 3 


ee: ee 


rat 


| han 
oes erosy “yet antiga “4! reo 0 
ee aah, veiraean, 


Monthly Journal Entries (Cont'd) 
Mill Department Profit and Loss x 


This entry to close actual expense accounts and absorb the 
gains or losses over standard costs for the period. 


#12 
Containers x 
Mill Department Profit and Loss x 
This entry to close out (gains or losses) over or under 


Federation differential standard coSt when established by 
the detailed inventory records. 





As has been stated in the Manual, the open transactions cannot be ignored 
if a complete picture of the current status of the business is to be Secured. 


In view of this fact we are giving next below a detailed memo 
covering inventory method of open trades brought to market as also two type 
journal entries, with explanatory comments. 


INVENTORY OF OPEN TRADES BROUGHT TO MARKET 


In both the Grain Department and Mill Department Profit and Loss accounts 
there are shown separate captions of the items making up the inventory of open 
transactions. It is not necessary that these be set up on books in the monthly clos= 
ings: However, at the end of the fiscal periods, when complete closings are made, 
these items must be included. 


In order to illustrate such entries and also to further clarify the in-= 
ventory procedure we are showing herewith two sample entries with certain comments 
that we think may be found helpful. 


#13 
Grain Dept. Open Trades Brought to Market xx 
P. & Le. Account Wheat 0.T. & T.A. 
P. & Le Account Wheat Futures 


P. & L. Account Grain Contracts (Flour Dept.) 
P. & L. Account Grain Sales (Customers) 


mM OM OR 


This entry to set up market difference between the actual 
contract values of these open items and the replacement 
(market value) basis at cut-off date, (This information will 
be used in Grain Department P. & L.) 


Note ls: 


These calculations may result in either debits or credits depending on the 
market position of the last cut-off. However, invariably they will be the 
reverse of the Flour Sales booked and unfilled, which are also revalued at the 
current market basis. 


Ah 










































oh UN 


te! Pratl ve Miia Beit il 
a Os 
x _pBROR! hos 1 oxt restate a 


i 
as 
4 hy: " 


A 


eds stones . sae ni paonwe suneqan fadtte- eiots oe a 


OT Oe et wT ies, hehehe Steere HOLee. 


weet io tort Yaoi 


Yo SaV0 CARR ees a0 mein) Pao aed es or 
ane i ldatae Sate “en la Ded Sieve Laas 
.ieoged Peecreval amg 


Nevers ! mep enoiLrebaans cere GP vera at, wf begate cied 
Fret pets ; yi Ah ats “Lo eee 2a ie om. 7e) esage te 2 


air % ; ot yt wef rh ow Seat etay i em 


ae mercyan O4 H tele? soye to hortdee Yrete 


) = a 


Pe A a, sen ede | ated 


BRAN OT AEGIS SO Bl RS SO SA 

“f - 

wi. #i Fort et neged TiSw be aa el PoE act od i 

fi LiCl mec a OTF, | aolicae - re saqeuh) 

woiom eit) eu 3 of @8 een) if visnieves Jom aha 





Pe Ors: #2 OL Oo RG isow ,Phediee Laeswdey, ect ta Bee ae, 


bok vend aus on 


¥ . ' ' i. 
Muwsod Ggiebrerc site ieasltsos gigqmee ows SP Wemed, Bi keocie ae ee 


Cie 
“x wHOee ad thaws a -—r 


Aol & RD Beery. : yatir:) oY K 

heTUdON Pandy Jushowe “at 

(, load, —et%)  e0 Cirdeeo pele Jekoodt “ah 
enete§ Oi) to Re, be) aire ohh as 


; a 

Tash oA! ote red Romeo PTD, few: a. 0% OF ri 
Shegetin iain os ree UATE Owe’ soars be te) wonlae de 

(iw modeawiotc! nldh) 6 TAR Ve See he Atak (ev Late 


(vib 1 aempireage’ ‘saan a 


ae9> re “onhObnedg of i gues ‘te sebainé mods - ft ILEROd 9 
git ed Ll tw yor) widelsiwad saver as 
Off 46 dal aven ail erie pi kty be Lie rene bis” 





4 re eo ‘a 
,) “y ee 0 <u 


Monthly Journal Entries (Cont'd) 


#14 
P. & L. Account : Unfilled Grain Contracts x 
P. & Le Account : Unfilled Flour Sales 
P. & Le Account : Unfilled Feed Sales x 


Mill Dept. Open Trades Brought to Market 


This entry to set up at market (or replacement) value the 
differences between the various prices at which unfilled 
flour and feed sales were booked and unshipped on cut-off 
date and the current (cut-off basis) value, with a full 
Standard expense allowance and also a full deduction for the 
NET profit estimated (and recorded in sales books) when 
sales were made. 


The unfilled grain contracts are also revalued at current market. 


The above information is necessary to prepare a P. & Le 
statement of the mill operations. 


Note 23 


These calculations may result in either debits or credits for same 
reasons as given under #13. 





; LT ip hae nie 
: Pro we yh 
4 HPA PA 
wait “ 
ae! . 
1\ DE a) ' iy 
yk sa 
\ f 





ae \ 


tans mot)" cuit £06 tt thre vt 
| j 


‘ 


x Thanet cl ‘exalbragea kot’ betLiteu fk au 
in de ee ett 4 Ruiohe bas Liraait | ‘sy ' 
at NG Ady Ra Be OR tA Ee 


























bo PO Sy ae bs), Veeco al cone eT: ricki A ehhh 


aD Ci an (Hevea aR ae ean trata de ah eae od ‘ete, 
“OS ESS Pear bea, \ ah ; re Noe ht v act xoewsed | 2¢ si wan 
papa kane gis bosood’ aman Ga Lie) hee ia 
ee he oe ‘ay buihieee | bend itow Tuo) THOT we ‘eta 
rit RS to. bo area eae a ag oO eM sb soiewo hea OaheE ‘ 

ger ped deka #2 baleomey! beled! Res na vee 


Ob mar 
ie weiPtioo te. barledeos ania oto aOR oe | Gai 


| ve a » 
aR TY A wry oF YNAsAeoge ez tO4 LIAS Te 
AHO LI A tao frie att? 10 4 


ose "hs 

1 whet Oa Sao eeee 
b vos 

ao A Ae “LORS et: 


et oad, ; 


lan 
= 
= 


Form 20 


GRAIN DEPARTMENT PROFIT AND LOSS STATEMENT 


Month oT 19 


Bushels Amount 


Wheat Sales: (Delivered to Mill Department or Customers) 
(Grain Contracts in order of bookings) di cetet lentes Po ce ew ec 


Cost of Wheat Sales: 


Opening Inventory (at market) wis a eh ieiked se Seti ce 
Purchases Unloaded including freight PP rer rte oeen whe 
Closed Futures é' a she 
Gross Total ete” Sreleue § Wicipatbe 
Closing Inventory (at market) ey hep hapeeeale sipide ue 


Net Total emer, Coney oi eluenze 


Balance (closed transactions) oe tae aaeule Bs codteime 


Grain Dept. Open Trades Brought to Market: 


Opening Closing 
(at market) (at market) 
(Welwnk TA. Pa tiauran: eis es eral yen tel ete 
Open Futures ee Bit Se ee A chi ets Siar eese 
Grain Contracts (Mill Department) Stle ka adn eke Aria. Shenae 
Grain Sales (Customers) Pireiied is) arse Oy arpa eeeeues 
Total Biaknediete sae -s ew eee tauiie 
Balance (open transactions) Seca) abe 
Net Profit or Loss (closed and open transactions) Se) earie 


































at bi 
\ 
: j 
“ey 
Fy LON 
. a % 
a ue ae ede Tes ty : Pry val $e of. k 
¥! ANS SRO GAA TPH S Sas ant ate re Ami: 
i 4 * J 
. é ‘e . eo f 
<i rt Pie’ in 
t 1 tk ae 1 Da 
*. J . “4 ‘ 7 : ! 
: ! ay 
Raho Da detetaleht, eae. ! we wt athe ag 8 ma a aes Se ae ae te 
\ i 
; i 
, "3 
nati 4 4 RA he 
‘ A! 
3 y 
s] ? ¥ ” * ’ 
‘ 
, 2 
hs 
‘, s 
y ‘ 7 
j . 
‘ 
‘ ‘ oe) . . 
’ 
» ’ 
- 
« 
if . 
1 » + eR we 4 ” 7s 
b i 
‘ ; poe « . 
mf > 5 “ 
4 
. > L Mi b 
ie A oe 
ns ‘ é ok ans ” c 
rt - 
* 
4 \y | Cad 
‘ BN brs mtd 
| i Being fi ta egy ewe |? 
F 5 i Pe % s 
, te 
Jt ’ ") ml aa, a Wee Sika 
2 
- ‘ \ 
’ 4 ) ” ] 4 ‘ . * ” + 
} Moh t 
: H $ : 5 Wy = 
: é ae eT TAY oer tay : 
’ i 4 4 ” * é ¥ “ * 4 Cre APUG ES payer ase] ‘ Ri Diet 
~ —y Y ! NY 
‘ i . at Gol ? ‘ 
SU atts 5 » 4 * * ~ * ’ ¢ “ i wearakoe. 
eh een A aoe = pelaoeiean 
ql aha ‘ ‘ Aen y Pin He piri 
: . 
i “ k * ‘ . * v ’ ‘ ‘ ie i M 
i 
° of 
j a i pe AY 
0 vii ied bate no hice ae 7 nanreieerce eda : 
} uy ¢ 
Ouran a 
) Ae aia Sf ys payctd mage bh 
f J a J 


‘i Ay 
A Perrier otek nine soot tia 





aes - 


Page le 


Gross Sales: Flour and Feed Shipments 


Deductions from Gross Sales: 


Total 


Net Sales: 


MILL DEPARTMENT PROFIT AND LOSS STATEMENT 


Freight on Shipments 


Returns and Allowances 


Carrying Charges 
Deductions 


Flour and Feed 


Cost of Sales3 


Wheat = 


(Contracts in order of bookings) 
Manufacturing Cost (at Standard) 


Administration Cost(at Standard) 


Selli 


Conta 


Total 


ng Cost 


iners (at Standard) 


(at Standard) 


Month Ending 


Inventory of Flour and Feed in Process and Stocks 


Flour 


Feed 


Total 


Balan 


Total 


Opening 
(at market) 


Ss i $ ee 
ce 
s Carried Forward 


Closing 
(at market) 





con ihed 


Form 21 


















 yatoud aioe 


Sa or Rn oem Re eb ae ein a yp ryan ina ay won nia 





EE ene tegen Ceca gle aah tae ptt i nadernet ga agen eee 


Sa aa Ee /Waraghd? feet ban | 


* ” ‘ 3 a “ Pagug ins: gD sn 
. 26 ere hs eevanvollA fam up 
‘ eh Ka copied gag 


. “— i 
oe n * 9 ; enad 7 
Pewee BE gl Mem aay Mpa ‘ ee 


hs, aaa | eg bout bie 3 


i 
p Hernan thee etomidate.” tts trae arith te Malgiteeh nest cdiiae eet ai date mere. 
* 


be) 


ery _,(bvaSass®, ze) rub" 
“4 sr (brsba7e 3} 3005 sodas 
meat A! Nak bier ge 96) ght 
ae, We ee (frahast?2 g5) 
110018 buh npecowt Bt hast bos aye 


pateolS ac tnedt 
s (tears fe) (testan fa} 


* 
+ reall 

» * “a ° * ? ° * * 7 , * P 
, “ 
: { 

: { 
“4 i 
by: 
uw * ° * ” * » a * * 4 
. 
Sh ie eee nen ter] oe catamaran 
' 5 ry 
i-* h - ya aw : 
4 >, # @ w &* «& g * © «6 © * «& 
" , j F 
be r iV A 7 ‘ * 
. . . 
2 F wise 8:4 % ‘ 
* 
J “ = e 
r ; . ¥ u 
fe W o> * ¥ * 4 a ® .) “ iv i Py 
’ wa" 

gt ; 
1 


¢ 


4 : ‘ i , 
OPN MR ARE ARBRE RO emt EON PE Re Om ON mer Stn A mia lt EW YR Sow rE tr ih eines Sarai me, 





‘Page 2. 


Totals Brought Forward + Pet oor 


Variations between Standard and Actual Cost: 


Losses Gains 
Manufacturing Go et whee ee is Me 
Administration PR Vinh erg, yt. GEG 6) 6 76. here et 
Selling e e J e ° e e e ° e e ® 
Containers » oes « Swipe Mah ete 


Sa euie ta’ 6) ls 
Total Operating Cost = Closed Transactions 
Balance = Closed Transactions 
Mill Department Open Trades Brought to Market 
Opening Closing 
(at market) (at market) 
Grain Contracts Se eeeeeaemeat: 6 aise mceeeny wilhe 
Unfilled Flour Bookings etebce eee yee eo .e.e4 cle « 
Unfilled Feed Bookings ei e* evens e) Chet iad ie: \s 
PEERS Ser eis. Sake We te ouch ies. 


Balance 


Supplementary Profit or Loss: 


Any Misce Profit or Loss Items Dake: catia. 68 


Total Supplementary Profit or Loss 


Net Profit or Loss Closed and Open Transactions 
6 


(2) ais. 


Form 21 
























‘ie re 
Chad or H ’ ; ; ‘ 
Bhi |) 4 RT VTE a Mn 
: j 4 La 

\ . ’ . ; , MY 
Saeried |: ee: Me ee 
A 7 , } / i ‘ 4 ae 
vi > 


n 
1 


tidoD ToutoA Boe ptehned® adewie 


Re | aatad 3 aeseok fe) tae 


‘ y y 
* © we my A * * 8 4 4 of 
) 
i »” Se. oe « ao ®» eles & 
y 
yi 
) + 2 4 * > 2? o's « é 
‘ ? " ? 2 * 2 sT 2 - * ‘ 
‘ 
an 
q) ee einer avin nyeimoncraieripiariemeet Toe mneas (me Dineen ernie Ae ae 
+ i 
I s f 
A y nN, i 
7 a pl i 
) o a ? = “ eo : 
ey e ' 


a 


: enolsSosanes? Retold ~ geos. 
Y a 


SI OT ae | enoksonecatt Bee 


4 O88) csleehvareyrh Planar whims omens rar NaOH lara La ance cU ERENT asranrulh AOiCieTaaah Hrytten trian mus teehtlen 








Sate toe ama ie 4 a OORT renee Sete 








+ . A ’ , - 
aaa saviak eo? siagets & 


watpo ld  Wakmagd a / 
ere 


{teak va) i toxiam Je) Ps 





Give) eta Se ere, sanideok tees 


‘| 
ty 
uigy, 3k E . ? ‘ . 
‘y } Ka - cae 
- (a) a oe le oo © oe @ a ; eamltood See 
pi i 
i dictiasdy Aelematd Se taeint a donc sent cori apie iedieriodagl 
L 
i o) x ° - * 4G eo @ © a @ ae 
; r 
y 
x * ’ @ of 


Septet ed yes trereritenerenm ren a-a9sthvirgcnant tienda hrs atharmrethae nh aan apn hie dt iret Win phn fabelianneaig (eV iy th palpi et had 


} : | tea ao H 


Ok ) ; °° ww ** "2 +s ameJ I azo. £0 Sa 


DAILY WHEAT PREMIUM ANALYSIS 





Form 22 





Wheat Wheat Position 
Pur. Flour Over Under 
t 40000 30000 10000 
2 20000 40000 20000 
3 10000 10000 0 
4 20000 10000 10000 
5 10000 __10000_ (ot ee pages 
100000 100000 20000 20000 
Premium Effect 
Over Under Premiums Loss Gain 
old New 
1 10000 +15 +16 $100.00 
R 20000 +12 +12 0 
3 + 7 + 4 0 
4 10000 + 4 + 2 $200.00 
5 0 ee 2 Bae +0 pe Bins 
Totals 20000 20000 $200.00 $100.00 
Note: 1. The premium change does not affect grades 3 and 5 as these two 


grades are in balance. 


2. The Gain of $100.00 on grade No. 1. and loss of $200.00 on grade 
No. 4, are based on current quotations which must be supplied by 
Grain Department to Mill Department for completing grain contracts 


set up. 


5. In case of changes in milling mixtures the entire volume of wheat 
and flour orders must be considered in order that this cumulative 
summary give correct picture of positions each grade wheat on hand. 


(2) -49- 


1 Alaa iB eS CR i Tee wo cc Oi mee , 


rois feet teont 


Ae le meme a in io gemen tie Ree tee ee 


pobal | tavo & 1wOLt 
bhoe bio | Bzebyo 


OOBOL . 90008 


goosr ‘e000! 


oe a ee eee ee ee Ei0P endl dae, Oe a OH 

















GHHOS Coos A on600L 
“ . joetts aulonrt 
ti Re ' peod Bary iment raha 


i oe | eietieiteshiiied 


wot ane £0 


HO. GOLe - Ol + OL 4 GOO f 


) b -f- vi + 


2 
| 
2 
ee 
Me 
4. 
y 


Q000L 


Ont eh = os pga mee Oe ee ms a mee ER, APTS ta Seite 


0O.00f@) OO. Ooke 80008 


-a0a8led ist: on 


share 26 00.0088 to eeol.bas .J .of ebary ao o0.0b88 to nteo iTS 
ms betiqgvs ed Jeng doliw esulistoup testivo 90 beesd org - 08 Ge 
ieiinen cietg gaitvelquoo act iromtrsqsd lua ot bheiar tia ra] ‘4 a 


‘ a ‘ing his fh | 7 
avivaLvasse sie tat pon at ‘rebar bean " 


jee 18 er » = } ee mu a i few 
bape ao Seedw tis A089 Ba idaiedi fi na ee ‘ ie 
+" cin | te tala oe p 7 abe , } hike hs 5 fi is rc m 
aos tj atl i ol ats a ee 
y om. , y ie be Pa j . va 
, ( , Bea m , ¥ ‘] 
ba i i a er? ii by 

i 4 Nosati it ali yet TG 
wn ay ie a) oe aa | a . Bhy ss i Lae 


. 


Form 23 


DAILY AND CUMULATIVE REPORT 
OF 
BY-PRODUCTS AVAILABLE AND OVERSOLD OR UNDERSOLD POSITION 


* By-Product Available 





Bulk 
Cost Mill 
Memo Barrels Bushels Quantity Card Basis Value 
Today's Net Patent Sales XXX xXx xx x xx 
Add Grade Adjustment 
or 
Deduct Grade Adjustment x x x x x 
Adjusted Patent Sales 
and By-Product Available XXX XXX xx x xX 
By-Product Sales Today x x x 
(List of day's sale in this space) 
Total By-Product Sales and Average Price x x x 
Net Oversold Today x x x 
" Undersold Today 
Cumulative Bal. Forward Over x x x 
Under 
Net Position Oversold x x x 


bd 4 Undersold 


Loss Per Bble or Ton 
Gain n n n eo 


* Note: This analysis sheet should have separate columns for First Clear, Second 
Clear, and each kind of mill feed made, ise., Bran, Shorts, Mixed Feeds, etc. 
















NURS) an var tate 


| hes wu pee) : jee iis byhenh an “a bent i by LY ae 
in KY. ue ae pb va ; \ | ‘ ae j i) mL a i) i , anh fi i) CUA, HATES on oY , aa 
ih | 
: P uy THrio “e 7} 
XN 
t 
y \ } 
' -— =r, 
| ¥ mf. 2 Less £3 big 


74 


TT a 
i's ‘On : ‘a 


ite ‘ | a te 


| : | . 7 rae b ioe ot 
| | 7 ha bLoxwep ft) 
7 5 : ; | é 





. cay , ae 


iF ye ai ee Che 4 a 4 f p 3 4 #Y 1b 4 hy Wi Shall i} io oD si Ul 5 ; mtr” Ai evayyt 8 i anelé ibs one ah re 
Per aor aheey Layim’ 2 ee “i able aaa ont’ Sia 8 t3) sia iid | 


4 ir 











Form 24. 
FLOUR SALES ANALYSIS 
SSA Vr arto) MAING L Nine apace lg 
Sales Material Gross Gross 
Territory Barrels Net Bulk Cost Margins Margin Memo 
Mill Mill Mill Per Barrel 
A x $ x $ x $ x 
. B x x x ~ 
C x se x x 
D x x x x 
E a6 = x x 
F x x x x 
Totals x x x x 
CUMULATIVE SUMMARY GROSS MARGINS MONTH TO DATE 
Sales Material Gross Gross 
Territory Barrels Net Bulk Cost Margins Margin Memo 
Mill Mill Mill Per Barrel 
A x $ x 
B 8 x 
C x: x 
; 
; D x x 
f E x x 
; F x x 
} Totals x x 








. att 










‘ 
i] 


, A . a ‘ i ae 
SLE IRA Mota AOE a Oe 


ee oe i Le ey 
ast 





ew ep ‘ ‘ eee ey AVS A pe ae eH trp pew yk kee phere Sek tepaless 


vie : k 
a! t . | 
ti af 
LIT ; ' 
Ve 





ye now! 














rine 4 eK ae yin | eo eb ta ier mney Veh wre egmee he 2 ren. " 
' ” 8 Y 
vi ke i ; : 
(3 
7 . ny we 


oe eae 


Appendix A 


GENERAL LEDGER ACCOUNTS 


showing debits, credits and balances for each account. 


—5 Qa 





Al 


A2 


AS 


A4 


*Note: 


Aono ibe 


CURRENT ASSETS 


Cash 


Debited 


Credited 


Balance 


with all cash received and which should be deposited in banks. 


with all cash disbursed and which is represented by checks 
drawne 


represents total cash on hand and in banks, 


Petty Cash Funds* 


Debited 


Credited 


Balance 


with the amounts of original petty cash funds when established 
and with any increases in the funds which have been established. 


with the amounts of any petty cash funds which have been dis- 
continued and with any decreases in the funds which have been 
established. 


represents the total of all petty cash funds, 


Drafts for Collection 


Debited 


Credited 


Balance 


with total drafts drawn for shipments of grain and mill products. 


with total of drafts paid, either by being accepted as deposits 
by banks or reported as collected by banks. 


represents total of unpaid drafts for shipments of grain and 
mill products, and corresponds with file of unpaid invoices for 
Shipments made on drafts. If draft register is used the balance 
also agrees with the total of drafts not marked "paid". 


Accounts Receivable 


Debited 


Credited 


with total of all invoices and other charges to customers on 
open accounts. 


with total of all payments made by customers on open accounts 
and also for any discounts or other allowances made to 
customerSse 


With any bills receivable received on account. 


With any amounts carried to the reserve for bad debts. 


Balance represents total due from customers on open accounts, 


Petty cash payments from each fund are reimbursed by drawing checks for 


total of 


payments. The checks are cashed and the money restores the 


fund to its original amount, therefore called a revolving fund. 


ad IG 
























Wen 
hh my 
j § 1 
vi j 
4 
fast 
fi 
Bs : 
vi 
bf 
i 
+s , 
' ; \ ee . 
, ‘i i ’ iJ § sg 
¥ : 
‘ ‘ C'iak Shia : oO Ose LEA Oh: oe 
' eras hans Aye 
etl Wwe ae 
Nk 
{ “ 
, : 4 = 
’ : ty ; \ 2oee a PS Ay eps ihre 
Ne ‘ 
“uy ‘ ; 
; ; ae } Sr NP ' ete 
evs) : Hie i. wi ¥ ine 
{ . 2 Wy) + rae, ry ha BF =A O 
vA + 
. PS, fee rhe | 7 2 ba Ds Dale 
a REO : io 4 
‘ i F Om 
» t ¥ 935 ‘ 4 
i s , f 95 Be ie 
e 
i (nyt fe f ae 
, £5 4 3 A) ue C4 — 
; , , ae, i 
| ti f . * alae * r " f Pee AP een! pif’ Y ae 
| By oy eee Henin Cy ha ity, 
, » 
\ 4 oe 4 ri 7. 
oY 
fet 1 ova 
MF y D307 eee 
F : ‘ } & t > a OP aes A Lt P C des 
{vq 
‘at pod TAM apa elie hoe Eee 
t of EY AS Ge TtSe eihn 5 ¥ 
4 e f } 
ew) a 
i anne 
“F r : y ? * a 
At , PO Aaa care 
‘4 (Z # (Ss a i? Prog 4 as 4 i 
, | | } : P MmUuial rae ‘Ys ; ¢ er ‘3 
‘> oA COROd G49 
of GT OM da Se Oe Ree eee Be Le aie eee 
u ‘ : ay ere La VE ie oR (BF ioOte: Veta ws if . 
-? F 
ah ; : iat § i" F : - 
eve * fi ges a oat « i © tid +. * Le 
an : ied Ol 20 Se SER ied 2 | o'r TG) fehdus S .: Peeing 
i me " ; 
‘ 


GNM, Bis Piet MMe Citi ai tet ee wore wrvelegder | 
TMNT BRS ees a a Petr tick yer, Pam eLe. ive wht: eeineto aft 
1 ROS EAT Bo hei iol iyhtty’ abrir 








A5 Bills Receivable 
Debited with any notes or other bills receivable received. 


With any notes or other bills receivable taken back because of 
non-payment. 


Credited with any payments on the principal of notes or other bills 
receivable. 


With the face value of any notes or bills receivable which have 
been discounted at banks or otherwise sold or transferred. 


With any losses on notes and other bills receivable carried to 
reserve for bad debts. 


Balance represents total face value of notes and other bills receivable 


on hand. 
B INVENTORIES 
Bl Wheat (Grain Department) 


Debited with total of invoices of wheat received and unloaded as shown 
by "wheat" column of Voucher Register. 


With the total of freight on wheat as shown by "recap" of freight 
column of the Voucher Register and credited to D3, Milling in 
Transit. 


With any gains directly affecting the inventory value of wheat. 


Credited with the total of transfers of wheat to Mill Department. See 
description of method on preceding pages. 


With cost of wheat and freight of any wheat sold, figured on 
same basis as wheat transferred to Mill Department. 


With any losses directly affecting the inventory value of 
wheat. 


Balance represents inventory value of wheat on hand. 
B2 Wheat Futures Closed (Grain Department ) 

Credited with gains on closed futures. 

Debited with losses on closed futures. 


Balance represents loss or gain on closed options for the period. This 
total is carried to K 1, Grain Department Profit or Loss. 


BS Product in Process and Stock 
Debited with total cost of all wheat and freight; see description of 


method in preceding pages. 


—54— 




























is fl 


. , 


ante 
th 
; 





‘e s he se 
DAViLVouet eSLABy Leer 


ewe oR, RO Sorute ame y ieevianes Olitd eee 40 ewtog yaa: ani C Aaa 
] Y ‘ : , ; : Je ; y ¢ 
of ELI THE 


{ ; LNT L's ae ; ; iS ed F ee SY | Arai? x wid JI ng GAArk 7 Wiis crew 
vel CRViGeS<’ 


. ; baal re wl 2 So TA Bawa oor?’ eat Tice 
f 4 rl - 
“ O) aaa 7s hisegn th woud 
i ¥ 1 
wit Py 1 é Pryte He eaeer Lee. ed ra es ve a ie 
‘ oct al ‘oh Oveede?s 
i] , ' P 9 Ta ett 
s Oe hs vr 1 DES Te eos le ee Pees. Lelok nin des 
tie) 0 
‘ 
» ty 7% “ f ny ¥ 
Cy a TE ul La 1a _ nie) 
| . yt 
tal fl iy : toy azig 
aot ! / Aas : “d 
en , S| 
i A ; "y 
( to “ " f i ‘ ’ f 
' ' 1a 4 + + J * | 4c. tt Pi A A t 
: j Hag ‘ 4 OE : ‘ peyys , 
2 - ; oy ‘ U Oot ta 7 4 + FP: ” 2a raw... O a} 
| Skat 
7 
Ms 3,09) HRs rea ae ar = 5 © ; ‘ iy 4 th - 4+ tr ft O49) vos coie 
- 
fe a yo (hod Lo @4e taney? lo [atod ety ge ieee 
CRORE BLOG OAC Ce a: Be cet Fae teeny 
i y v : 4 ’ he 1 : 4 * e* 4 s 
4 7) j j rt * Jit i 4 
t ‘ 1 4 ee * iy 
uP i 4 if rt Bust Fre i W Lé % elas 
Pe D2 4) Leos > TELOOTER sone: Vind hl" 
i eA L@uw 
Ee <1] na ; aN eg ei ay eto sows} siz ae ia 
Pvwigs ae 7 st c * 
(vuentuaaqed: giao) feat 
. reer 6 
a i : : 
eee Pele loa ei sy € 
i ' ; i i ; 
Bi ind OP Va oe ae 
Lora? betekan ma RVeCOL dd tw. 


Mierke Ol TOG OMY 20% ene tidge Aves ls’ de ere ig wees vet wee, 
M) efits) 708) Tea. a ea Be baditinn az apace 





Credited 


With total of manufacturing, administration, office selling, 
outside and branch selling costs at standard. 


With total of containers based on production records and 
calculated at the Federation list of differentials. 


With any other charges directly affecting the inventory value 
of product in process and stocks 


with inventory value of flour, feed and packages as of "cut-off" 
date: See description of method in preceding pages. 


With any other losses directly affecting the inventory value of 
product in process and stocks 


Balance represents the total cost of the goods sold and shipped. 
B4 Containers 

Debited with total of invoices for containers as shown by the "Con- 
tainers" column of the Voucher Register. 

With the freight on containers as shown by the "recap" of the 
"Freight" column of the Voucher Register. 

With any gains directly affecting the inventory value of 
containers. 

Credited with the total cost of sacks used as charged to B3, Product in 
Process and Stock. 

With any losses directly affecting the inventory value of con=- 
tainers. This includes spoiled sacks for month. 

Balance represents inventory value of containers at cost, plus or minus 
any losses or gains on differentials for containers. The 
gross loss or gain on containers may be determined and closed 
out at any time by taking an inventory of containers and start= 
ing anew with the inventory as the "cost" of all containers 
on hand. 

B5 supplies and Repairs 


This inventory account is to be used only when there is a storeroom and 
when supplies and repair parts are not charged directly to operating 
costs from "recap" of the register. 


The following applies only when the inventory accounts are kept; 


Debited 


with total cost of invoices of supplies or repairs parts put in 
stores as shown by "Supplies and Repairs" column of the Voucher 
Register. 


With all freight on Supplies and repairs as shown by the "recap" 
of "freight" column of the Voucher Register. 


With any gains directly affecting the inventory value of 
supplies. 


py a 









































he M By ald ge 


i ao Bs" 
Wi .> Ph Boyce: nog sanbbehy no, overt Pyasaeesals TO ‘fagad’ any 
| ular Seompt hth to wel TOR TaLEREM ead AT} ‘Sots ee, i 


ros aevit ge a #oava0 swaniee aK teat f: 7ig8 A384) } 
| atvaty bos seca «) shored! to, 


FS weetoe® te af bavesttince fee ‘hae? aro "os Ger tey oan, fasts aie: 
soar gilGevorg ah Posvent. to eohvagess exe. Seheo 


tevurk off worl téetta witeetih Raneal vars sites ane 
stoot2’ bist sedoorg teh Vagbetg 


siaq~uide hun bom ehody end I geo feihad eae Bees 


a 


: eit 3-2 itoo TOT eaatovras Tov sasey erie 
»Tofeinoh redsdal edt So oeloo *etdares a 
en?) 20° “ances” ‘et} Gd ewotin ee eremkeddbo at Sia koeh et ee ee 


1. Kf an gov at 2G. omysag * iigte rt” 
%, Vy as". ere ¢} mt 6 f - wr i sa ‘ * ty yy by et? P ri } 5 vitS ae Bie 
; ; adits | 
VBR of heaears | baa extend Re sean’, Cates an? astm! boat 
. sHUOTE. bees REO OEE 


yy yodoeveh eft gabtoetie yiteetth aberad ene cae 
‘gltoa tt atede belioge eebpledt sax2" Vanes eee 


RMS TO) Bie |, 9 . evencatate to opie yaatnevel Aras ne'er 
Cyaan oi efeiicereVilh a éhhan om detenl vere 
Bake 20] por Ys ) od vna ceentascioo 16. Hine eh Bees naeera 
; MA vid ia ¥ is yee) Fe Beg 
eas iat 6 # Of L1G. 10 nog" oct e@8 ywtolmevnt edi driv wees ant: 1. Vel 
neue “bitin a8. ED 


ie sient & 


bee or sTote pe e ah ofedt cote iso heen od oe bs Jogooos eyhinevell oi . 
Be a ¢ : * Yteootth Lon weto tem era Bitaq tileqet Sag é atari: fers) 
: stesais 40% eds to rene itowt nia 


| 240k otn ateihoeia ved int vccl ark? norte ving sottegs antsszion 


i. ih. Mam BELEN, ‘Hagen. to ted Lagos te To, woo koy mk to Deeo “bates. Rite tag © 
*s Bre 6% ht 4 ar) ro criedicy ie. ¥ at Pets 4 Fivies a4 4 4 aust ie ote Om ee HR eh ey 

my | | mr . 
Lae | std Aa Sen waaye haem 


faacen® gsi) wd dvoth ea Crkaged Bay Pee Ke > siphon Cm dott f 
| ers gluon xe faint sae shin is) sir ac eee ag 


TO ular YoH seve on natinorte iter heute 


if . : 4 ) it ee Chey r “ae ' ¥ _ Me 






B6 


Cl 


C2 


C3 


C4 


Credited with total of all supplies and repair parts issued from store~ 
room and charged to other accounts in Voucher Register, figured 
at cost, including margin for freight. 


With any losses directly affecting the inventory value of 
supplies. 


Balance represents inventory value of supplies and repair parts in 
stores, plus or minus losses and gains on freight, shortages, 
overages and the like, The gross loss or gain may be figured 
and closed at any time by taking inventory and using the 
inventory as "cost" of supplies on hand. 


Open Trades Brought to Market (See Journal Entries 13 and 14) 


FIXED ASSETS 

Land 
Debited with all purchases of land. 
Credited with all sales of land. 


Balance represents value of land. However the matter of land values are 
largely determined by other factors than purchase and sales 
prices. The above has only a theoretical application, 


Yard Improvements 


Debited with all expenditures for yard improvements: Fences, switches, 
water mains, etc. 


Credited with any reduction in value by reappraisal. 


Balance represents value of yard improvements. 


Storage Tanks 


Debited with the cost of building and with any cost of additions in 
excess of any charges made to depreciation reserve. 


With any gains directly affecting the asset value of buildings. 


Credited with sales of any buildings or any buildings destroyed after 
making suitable allowances for the charges which should be 
made to depreciation reserves 


With any losses directly affecting the asset value of buildings. 


Balance represents the so-called cost of the buildings against which is 
the reserve for depreciation of buildings. However, the values 
of buildings are often affected by other factors than cost and 
sales prices and the depreciation reserve. 


Elevator and Mill Buildings 


Debited with the cost of buildings and with any cost of additions in 
excess of any charges made to depreciation reserve. 


With any gains directly affecting the asset value of buildings. 
| —56- 7 











! be ie eR + ; roan et vate im th A, 
(POF ‘i an ae Hat ayy baateties “Abou ¢ ae. ane aes ti 
ee is | taint owagay bode i nantes “Tae ei inte’ aD 































bi Ree vr Tgneyy M 
mh ieee ta STE SO Oi Like eit etd x Secunia 
: ‘ hw T OO PRRBN Dee weragt Coase “O ne Oy atte te” 


Colt o Vea what 26 BROL: Sear obey yee: wes Bee’: Re TATA ha! 
Wii Aas gral eovad goa ae Bake ie tA issinabns Sag, oS 
Seree? pats RAL LS ES Wieoo® n, WTO ene rite 


patijen. Regeecct, aoe’ tomy oh oe i on 


etek tT senmipie L2m@ pat 


geunt ) Reled ie sty g 


‘ i ~" 
uf? sover7og ghaetl to: sulaw efmauodaew 


{ i he adi ok ii eres 
; ; sau: oxleretel lunes’ 
P ‘ - : j i P ti we ea at hie ee » Py ped! 
. eee ABS. Pete SG oan OY roan! FE WOLRE, Bea, me ae EY , 
Aig 5 i 
Pap 
BIS 
oe | a ae 


tofgomevorgol fray not seagtitaseaemte Gia aii 


Pee agert Sad Bete Bt od Pommard. we gee 


~chiugmevrongnt Srey it. eucay eledaarres 


gS Roel hhhe We, tucd woe Ayiw, dey, nebhd Sod As eee) Sr ieee 
serait colialoenqed of eham tegnate Yaa to, ACGORG 


Lise hw Law fecen wth) witootte: y Li Gent h .hAe og iP a 
hing: PaO Ble cet wit te Clb hud yrs Ba eta ee ee 
tiguln. he Lite ewercle’ 4a27 ¥o% we abet, ae §ia# Lure gyn,” 

; * “Tene Ss ata i nat @ o h§.. Cede 


bento ltud to steer Jomem adh wrth coe "i sDotkh Be minal: 88, ol 


Cotdy seclegs opal ied ons ti 2004 Soleo e, ante leaned peer es f 
ROULAY Had. tBVHv OR  seRAhp t tid te aot eh pangs 4g: wrtegut ‘echt wae ee 
bie (Fens aust?) etesos’ Tate? , MG Selous: BHD Ta ete Aye DT bret tO. : i, 

oerwede ao lsate ib wae ial alec alee 


ak adolTibis Yo gos vite ‘igh. has “deaprh b Ltank: 
eOTOR RE tits er if. Di ha: 





Credited with sales of any buildings or any buildings destroyed after 


making suitable allowances for the charges which should be 
made to depreciation reservée 


With any losses directly affecting the asset value of buildings. 


Balance represents the so-called cost of buildings against which is the 
depreciation reserve of buildings. However, the vaiues of 
buildings are often affected by other factors than cost and 
Sales prices and the depreciation reserve. 

CS Elevator and Mill Machinery and Equipment 
Debited with the cost of machinery and equipment including the cost of 


freight and installation, and any cost of renewals or replace= 
ments which increase the asset values in excess of any charges 
made to depreciation reserve. 


With any gains directly affecting the asset value of machinery 
and equipment. 


Credited with any sales of machinery and equipment or machinery and 


Balance 


equipment destroyed, replaced or "junked" after making suitable 
allowances for the charges which should be made to depreciation 
reserve. 


With any losses directly affecting the asset value of machinery 
and equipment. 


represents the cost value of machinery and equipment against 
which the depreciation reserve on machinery and equipment is 
considered in figuring the current value. The values of 
machinery and equipment may also be affected by other factors 
than cost and selling prices and depreciation reserves 


C6 Power Buildings 


Debited 


Credited 


with the cost of buildings and with any cost of additions in 
excess of any charges made to depreciation reserve. 


With any gains directly affecting the asset value of buildings. 


with sales of any buildings or any buildings destroyed after 
making suitable allowances for the charges which should be made 


' to depreciation reserve. 


Balance 


With any losses directly affecting the asset value of buildings. 


represents the so-called cost of buildings against which is the 
reserve for depreciation of buildings. However, the values of 
buildings are often affected by other factors than cost and 
sales prices and the depreciation reserve. 


Cie, Power Machinery and Equipment 


Debited 


with the cost of machinery and equipment including the cost of 
freight and installation, and any cost of renewals or replace= 
ments which increase the asset values in excess of any charges 
made to depreciation reserves 


—57~ 








bye 
th wa vied 
ae) 
oe by 
4 
43 J 
. 
I 
it 
‘ 
j 
- 
. 5 
fA. Pes 
“re h 
Serie 
; as 
fear 
A 
Ce 


ee tue < 


Dik path weeas ae k | 


sf toe the SL pietss 


r » by ne ~ 
> ! of 0 ok ta et 
4 ries oe! 
n i) om . 
re See ie Se 
4 
‘ ‘i oa {i he 
he 
* I 
= jue 
) ‘ i 
: ‘ 
ret Met 
* 4 : 
iF 
i : a 
* ' , 


. 
t 
rH Ge 
i 
7 a 
ft 
' 
J 
: ; 
\ r 
H 
7) 
" 
‘ , Th ? 
P my ese #4 ‘ 
s \ 
ul t - 
; 
. +7 7 7 a 
f ; 
s 
a th 4 
wos 
‘ i Wire c: 
4! si\é Le we 2 
ie Pog?) 8 60 Tole te 
b'\\m j aa: . ee 
‘ a | rh i oes) ants 


sia ; 29 of 


rye f 
iets Va 44% BO yoo ap’ 


gOettew 


i NES 


* 
os 





Credited 


Balance 


With any gains directly affecting the asset value of machinery 
and equipment. 


with any sales of machinery and equipment or machinery and 
equipment destroyed, replaced or "junked" after making suitable 
allowances for the charges which should be made to depreciation 
reserve. 


With any losses directly affecting the asset value of machinery 
and equipment. 


represents the cost value of machinery and equipment against 
which the depreciation reserve on machinery and equipment is 
considered in figuring the current value. The values of 
machinery and equipment may also be affected by other factors 
than cost and selling prices and depreciation reservs,. 


C8 Office Buildings 


Debited 


Credited 


Balance 


with the cost of buildings and with any cost of additions in 
excess of any charges made to depreciation reserve. 


With any gains directly affecting the asset value of buildings. 


with sales of any buildings or any buildings destroyed after 
making suitable allowances for the charges which should be made 
to depreciation reserve. 


With any losses directly affecting the asset value of buildings. 


represents the so-called cost of buildings against which is the 
reserve for depreciation of buildingse However, the values of 
buildings are often affected by other factors than cost and 
Sales prices and the depreciation reserve. 


C9 Office Furniture and Equipment 


Debited 


Credited 


Balance 


with the cost of all purchases of office furniture and 
equipment, 


With all gains directly affecting the asset value of office 
furniture and equipment. 


with all sales of office furniture and fixtures and any office 
furniture and equipment discarded after making proper allow- 
ances for the amount which should be made to depreciation 
reServee 


With any losses that directly affect the asset value of office 
furniture and equipment. 


represents cost value of office furniture and equipment. The 


depreciation reserve must be considered in arriving at the 
current asset value. 


-58— 














oh hieeacs aig THe Pieri diced potion We esas 



























reso BAe Re: bal Cae eat 
Wet y a9 hot i shih inscatbant 
kite ge oath Odi ot des aS 

| ) OVE ae 


; a, . \ 
14s; 4 CHORRE I osc 5 RR tay 
het) dete Baler 





0° CA ren) Welt ie eae 
if gOrwveleviceh’ aad: fedora 
Sorte ri ad, bagebteesa 


my yet Rd, ae | ete ME ah 6 tie Were SAC Oia 


ae ! 


BD kL Panga hh CM Aa SS dah 9 
J a 
¢ 
* of 
t ehh ny vad 
, Se gus a 
*% on ae el Py’ ey 17> etireer 
: ¥ > A 
*p 
i? i ¥ J 
4 { 2 yy) 
BS 


We NY Gin SE BO: 7 ea 
1 LVStag> (Ot eye 
Suet be Nel vet: Us 


t 
evrsiiy a 
Ly Bs S098 a wee f 
re! — ar. Sur St femme Lem yp 
i 
t xa 4 Kas 
‘> a % ) oft ‘ ree a 
oyu ee ¥ - + 
evait SILO 
" 4 } 
7 # . ey, 


“ed opi Vito to \tetaie Lie oe ieee 
‘omit t teenutes § tripe Rint epee ae TN 
ay Mi lse Trips ue wy TOT, Sache 


hdres Mie 


Lyoontlh Sorte. eateoL) yin ike 
etnondivie ban oral) eet 


7X j 


*70..¥o arta, Jets ea, 


yi 


C10 Autos and Trucks 


Debited with the cost of autos and trucks and with the cost of any 
additions made in excess of any charges made to depreciation 
reserve. 


With any gains directly affecting the asset value of autos and 
trucks. 


Credited with the sale of any autos and trucks or of any autos and trucks 
destroyed after making suitable allowances for the charges 
which should be made to depreciation reserve. 


With any losses that directly affect the asset value of autos 
and trucks. 


D ADVANCES AND MISCELLANEOUS 
D1 Outside Investments 


Debited with all outside investments at cost. 
With any gains when investments are sold. 


With any gains directly affecting the asset value of the 
investments. 


Credited with the sale of outSide investments at cost. 
With any losses when investments are sold. 


With any losses directly affecting the asset value of the 
investments. 


Balance represents the value of outside investments at cost. However, 
other factors than costs may affect the asset value of outside 
investments and may modify the debits, credits and balance 
accordingly. 


D2 Advances 


Debited for advances made for expenses of salesmen and other similar 
' purposes. 


Credited for amounts returned or reported and charges to cost, expenses 
and other accounts. 


Balance represents total of advances outstanding but which may rep- 
resent unreported coSts and expenses rather than assets. 


D3 Milling in Transit 


Debited with total of freight on wheat as shown by "recap" of "Freight" 
column of Voucher Register. 


With any gains on freight in transit. 


-59— 







~~} Ts ’ 
f a “ By . 
: raid. % Oe A 
yur B.S y “ + Wes if t eae eee by mk PET hy. : 
i bd ; , ou oF ut ¥ ats 1G Chey Rs Bae he Oy ’ 
sy a’ 1 mis 
7 eUViISae?t 
yt ‘ i if - 7 , 7 : wat : ry on rh > ‘ reat . eo a 
‘ : ‘ he PD O40. 10s Y. GOOD OLA? Tee lees q 
eG RDS 
. ¢ r ’ ee ry his oP a 
y ; ; : 4 is 7 
iS 4 ; ; ‘ 
* J 5 re ren ae 
y tad 
‘ we fate | $, ri tw rg " 
’ > a 
[ i ; a ‘ rua Les 
w ARO 2 Se 
; 
= 
¢ i 
, 
. < 2.5 
portale 
' 
® r .. 
t 
> 
i - i - % 
i i hay i a ry i id 
' 
; ee i ory 
“4 7 
a ; 
7f 
' 
4 f ~ * 
* 5 
r ¥ " eoeS 
: : . 
; r WwW sim 
be ¥ i ne 
. i) y LG oh bia 
: 4 " j f Per t'e Ps 
ft : : ‘ 
i : de i } ‘ ts Aas 
; 4 t » ~ &, > . 
+f he ae eA Fiz 
vigetodeds 
2 ¥ * rn" « f . 
) a! i one | ar 
ge 1S Bere yes 
¢ 


GF seaRtety Sy AaSteqet ve berrelet (eo terdese aoe ee 


23avodds sedge tae 





Credited with all freight in transit charged to wheat. 


With any freight in transit which is not charged to wheat but 
to other accounts. 


Balance represents the total value of milling in transit in suspense. 
D4 Good Will 


Debited with value of good will acquired and by any increases in value 
of good will. 


Credited with good will charged off to costs, expenses and the like. 


With any reductions or losses directly affecting the value of 
good will. 


Balance represents the book value of good will. 


Deieheowew LT) TBs 


E CURRENT LIABILITIES 
El Accounts Payable 


Credited with total of Voucher Register. 


Debited with total payments of bills and invoices as shown by cash 
book. 


With total fixed and other charges included in Voucher Register 
but to be credited to such accounts as F 1, Depreciation Re- 
serve, F 2, Interest Reserve, F 5, Tax Reserve, and the like. 


With total of supplies issued from stores of supplies and total 
of repair material and parts issued from stores of repairs 
which are charged from issues and reports instead of directly 
from original invoices when supplies and repair materials were 
received. 


With any other items charged to accounts in Voucher Register but 
which are not received and billed from purchase creditors and 
entered from invoices, 

Balance represents the total of accounts payable unpaid, corresponding 


with the file of unpaid bills, and including any accrued or 
unpaid payrolls. 


E2 Bills Payable 


Credited with all notes payable, issued and delivered, and all other 
bills payable, such as acceptances of time drafts and the like. 


Debited with all payments on principals of bills payable. 


Balance represents total amount of liability for bills payable. 


—60— 




























i oy 


aoe ‘ Heb 


a | saatye. SHA tH tot at ity Pee Pit | pe. i a | 
i ; hae ; ‘phy se ireen $003 ‘ 


sy) 9 Cie iro: at Sivcrce at galkitio Xo sore faroe ‘ect! cgunaey 





—— 


; etodihet yas wd Wie pevinges Piae chee: 16 Ou ley abe, 
ye of tAe HOOR 10 


; vOut s @ wip £eetogee ),83do0 af Vio pom eeia thw eos, td Re 


1 ant F ovlb- gapael w6 aellephet eit mein 
. Lhtw boow 


eS 
vi £ ow 2) OMe Pn ease aia Prete = 
’ 
, 
+ et * 
: 4 we? GY 
- dene reniiennaind 
wat 
NOpj tye 
; 
! oe 
‘gir 25 j ' . : Ta ¥ 
ca 
yi ‘ 
- ; 4 v f C ; . " i : a AAT p| £22 
. « d 
ri ‘ 
: 
. ~e ‘a 
t ij ‘ faTLI f mi HSER? 26000 
; , ' { & wi Lal wah ‘ ies abe a og Bisa) 
“i orrenok xet, vinegh f at 8 8 
i 
: - ‘ pg ha n nal ¥ n 2 pe ea ie S| i 
rit sete haan esioda pert betead setiqase: To Segoe onda aan 
: iyo Hoe omg May . in doies f . Gyek <t¢ ‘Oe ae tt, a ee, ee | ‘ mE) y 
; ia } Gy o eRe oS ER i US RT bo van 
; y ge A ‘ae 
AG? pure: bose eevee) gats banvats ers tezae Fiat, 
, . , , 
Vi : of a a.’ " pe be be Af ep Ad haa be 4) ¢ c * I J MA beci + < + ‘- MON 
i 
7 
shevieous 
i u 
~j $ * ad a , u Pt > 
'S . ; ¥ : PAG { fl das etibh oh a aire Viki ch iy fl ; 
/ — . : ba ew ~~ Pi 7 : : ae ie 5 io : a VA 
et J bg 6 ae ae ees We) Pb BD "LAL ‘5 fat Wes 1, 20 hfe hie roy Ruy, ray 84 AL res ee ¢ 


| . ari smepiowh won'h: bavetae 1s 


Mo me iergeets 9 he, MES SOIT ss twuoend 10 {azot: of2, esaacended 
, » 40 hawrtooe + Bolbiplent oan. eo hitd Be aa tenes te. ote athe 
‘ ' | wile “Yen Sage 


ey er cartes p sTeviteb bon hauset PL ideved’ disven. ae Koby I 


wth: Li e ‘ | Wi Oe8, , Bias 2h a | ‘ hk Re UlntAIy 39 De ey 6) agg jennsatne nL bey 


pen - x *) i 4 ty 






pee} i 





Lieto LLP te afogtoaha we rsamerga Fin ithe 















Cece te ree ETL E eOr nothta: abe, ™, ston 
Leta yet oe bP ihe Bie he 
, nm , ihe 














Rare 
ae hi of, na 
4 a 


brite 


E3 


Fl 


F2 


(2) 


Broker's Accounts Payable (One account for each broker) 


Credited with losses on closed futures including brokerage and com-= 


Debited 


Balance 


RESERVES 


missionSe 


With any payments received from grain brokers on account as 
shown by the cash book. 


With commissions earned on flour and feed sales shipped. 


with gains on closed futures after deducting brokerage and 
commissions. 


With any payments made to brokers on account as shown by the 
cash book. 


is the net amount due to or from brokers. 


Depreciation Reserve 


Credited with reserves for depreciation charged to operating accounts, 


Debited 


Balance, 


J 3, Auto and Truck, J 4, Manufacturing Expense; also see Form 3. 


With loss and adjustments on buildings, machinery and equipment 
sold other than those which affect the asset accountSe 


with cost of any renewals, replacements and extraordinary re- 
pairs for restoring buildings, machinery and equipment and, 
therefore, represented by the aécumulated credits to deprecia-= 
tion reserve. This does not include additions or increased 
values of plant and equipment which increases the asset value 
and therefore are charged to the Fixed Asset Accounts, 

Cu2,t0 0 10. 


With depreciation on any buildings, machinery and equipment 
sold or otherwise disposed of and credited to Fixed Assets 
Account C 2 to C 10 at the same values at which they were 


charged to the Fixed Assets Account. 


if a credit, represents depreciation reserve against the fixed 
assets, and which exist in the working assets of the business 
unless a reserve fund is established. If there is a debit 
balance it represents an excess of charges to depreciation 
reserve over the reserves made; in other words, there is no 
reserve but, rather, an unabsorbed debit balance. 


Interest Reserve 


Credited with actual interest cost charged to J 4, manufacturing; also 


Debited 


see Form 3. 


with any interest chérges paid as shown by cash book or any 
accrued interest allowed. 


ea 





a saa Tee PN wee 4 
ASAE OME TOO YIU a aN ta Re GG) Ee 
, ; Mes t Da edd AY a4 Pee ! } ys ie 
: ey, a } By Rais ithe ogi ert we 

ae 
Pia uae aaa 

7 } " ¥ G 

iv Fi ) " n, 

mA 

a ; 

NA ‘ 


(toserd tose 0% taus ous ont) atdawey atau 

: A te: 

Hore bas, exatedotd anthyioal eeuitiet: beeoid wo deunet dsiw 
amg leein 





































Ba Jaguooos oo atexotd ninxa mos} Bevisoem etdewrvaq yne Byilt 
Hood Mage eds yd owerte 


eheqqivie eeler best, bus tilt oe beara énotee heme Pew 


bor egetexord aiifoubel ter le Loup iod Baeeio: ae ening atin 
seroieeghanco 


od Ed awdta) ae Javoeon so atedewd of eimai 2 tacmvad wae igew 
~~ ‘ghd, ize0 | 


_ 


STSVOTE BOC to OF On causes fem on? et 


Ba evirgoen 


wom 


A | 
+ 


eitumoor timteac of beyrais coktetpetdqeh 16? sevaeeet Hike 
aoe 2 Sh ——- rr. Ps a, —— oer : p a 
it MIST OF OCALB JOUNedKA Bokiutosn teat. & _xawit Dis O} ath &.G 
; % 


fiigpcivpe foe yaenidean’  eactoiivud go atmetdenibs bre, eeuk aeag 
SEVER onl SoaTTA dotew seody vaady wetdse Bios 
~O?t Yiaoiiioatixe bas giaswecalaet ,alewenet yea 26 Fa09 BIte 
eke Inenqgscoe oOusa Yienlosaw yeenlbiivd aniaeyest 101 .agieg 
ewiscetgdh oy wrthena betelimtoka eds ¥d $8 teeaeige? eot6 Teteny . 
beavsetmt: 36 wooigibhe ebiifocl Joa 2600 #int yeviszen gor 
eclny sJeven ety ocrsdteml doidw Saderwglape fas Joslq te) eoulay 
IMMOQHA JOccA Heald eds oF begrsds eta etotared? hes 

OLS of BD 

Sitomaliipea bus guaciforesd ,esali tind vy: 76 noltsicertqsd note 
Pete HOKE a? host there bess Te aaa aatwredly to Blioa 
suae yes soli ic eouley orieet of. +6 OL 9D: oF 8.0 wewoeed 
sInuenod edeezd S6xiF, off oF begiacio 


Fi 
= 


hextt eff fauhene eveoret solieivergeb atnedetges..¢ibeto 6 sk 
Shenlawd edd. Yo afekeR nuistow eft at fedxe aotaw bus 8798288 

4 iidob sa gt eredts th  ,beteiidates el Savt evaeset 6 Beelau 
woltetoerged of eextacdh Yo eauoxe aa @inevetdesd 31 sannied 

om gt ores ,bhtew veto ot ; sham eevregsx edd seve eyvoasa 
coonslead Sideh vedieggany oB ,tedtex ,sodevieset. 


bone 


Heri! we: td dood dase yd awode ag blag noyreito fenre tah von. iw 
aan " 1s Nay i nee i hs 


Wie. Sate yantays oe iiacer bd u of beguatio S890 fink tal toured jeer: 
uF mh 2 way Cae 


ea? 
4 





it ay, pt aN 
i! a) 7 tap PAF a) F | ey 

4 ‘ f fH, 2.2 ~ ’ 4 . , 
an fig Pons ¥ : " ? A 

hs Spe oP ee eT ee ea ee eet ie Ue 

Wye i 3 fol | Ys A OL” Ba Oe Paiecg, ' 
‘ ty WT iv! Almay { $51 | 
} 


F3 


F4 


F5 


F6 


Gl 


(2) 


Balance 





Tax Reserve 


Credited 


Debited 


Balance, 


represents interest prepaid if a debit balance, and accrued 
interest if a credit balance. 


with taxes (except income and excess profit taxes) charged to 
operating accounts, J 4; also see Form 3. 


with all payments of taxes (except income and excess profit 
taxes) as shown by the cash book. 


if a debit, represents excess of payments over reserves; if a 
credit, represents excess of reServes over payments. 


Insurance Reserve 


Credited 


Debited 


Balance, 


with all insurance charged to operating accounts, J3, J4, and 
J5; also see Form 3.. 


with all payments of insurance premiums as shown by the cash 
book. 


if a debit, represents payments in excess of reserves and 
charges to operating accounts; if a credit, represents reserves 
and charges to operating accounts in excess of payments. 


Reserve for Bad Debts 


Credited 


Debited 


Balance, 


with reserves for bad debts charged to J 6, Selling Costs, 
each month, also see Form 2, Section C. 


with losses on customers' accounts receivable transferred from 
A 4, Accounts Receivable, and A 5, Bills Receivable. 


if a debit, represents excess of losses over reserves; if a 
credit, represents excess of reserves over 10SS@Se 


Reserve for Advertising 


Credited 


Debited 


Balance, 


with reserve for advertising charged to J 6, Selling Costs, 
each month, also see Form 2, Section C. 


with all payments of invoices covering advertising as shown by 
the cash book, 


if a debit, represents prepaid value advertising charges over 
reserves; if a credit, represents excess of reserves over 
payments, 


CAPITAL ACCOUNTS 


Capital Stock 


Credited 


with par value of capital stock issued. 


a 






































i t } ke Ms Uy “i Ml de 
herices his ,eousisd tideb 2-16 bisgerag 2 wink ainoseiqet ¢ 
-cousisd sibet s Thiteetwihi +) 


a Pesce eee 


mene 
mad 
ri 
— 
» 
= 
— 
a} 


7 


bosytedo f{aexal-sitord seeike ig agioosh: Jgaons } Boxet ddtw 
© M104 90% Gels 1.% ~ednsovoa gaisatege 


SLiow, sagexe Bas etd0nk Jqroxe) seeasy 6 esnemeny Lia Aste 
«100d ceag ety yd ovoce Ge (eexss 


* 
S 


ti Ji GROVISEHt TOVO Bieecrrag to seeks Afadastaet ~iides.e Fe 
susRonyag TVD Reviesest To apeotw ecnametqet ~ficer 
4 * 

Ree, dG .5t‘.etnycocs gpaktiareqo of bapredé eonatueat Cis dsiw Bes 
.»o MTOU 208 onle Fab ¥ 


inge oft vd sgotla 26 angimetq somanvenk to ofeeaven Lin dele bed 
*t : . alld Pe 


hgh aevieest to sdeoxns nt elmomgny etocvenqet (tideh & a eons ied 
Seviszeet ussotertqot .cideto A Th sy afryooos anksateqo of sentate “arn 
2 “ y y } . 1 

, shitegyag to agetxe al etnueoos gaitaeisqe of Gegtats bas Pst 


aided Sse 


word hentetenssy cldeviecet. atavooon ‘eremoteno no seasol dtiv 
sQidavioses @Lii€ .5 A bas ,oldavieoes siagegoA: .a a 

6 IL peeviezer xeve eézeol to adeoxs etnonerqgen ,tideb # tt enna eam 
e2Gceai isvo aevideet to aaeoxe aineterget ,7iheto i 


igterevbs 


23209 gakile® .8 % of bextadto gabtissevha rot aviecet coke 
es & wioT 608 cafe  .dstom dose 


vq cworia es anlélinvevis ada esoloval To aimouredg fia nike 
eXood dans pel? 


TS¥0, negiado galelivevba eulav hisqetg esaseetqet ,tideh a tt Senn tad 
Tove seviteaet to geeexe ainererqet (slhex0. 6 28 ;eevisess l 


: ir ainenysg 


Beis 


sbeuael Loose fostaey 2 30 > eater ‘= ath 


G2 


GS 


G4 


Hl 


Debited 
Balance 


Bonds 


Credited 


Debited 


Balance 


with par value of capital stock redeemed and cancelled. 


represents par value of capital stock issued and outstanding. 


with face value of bonds issued. 
with face value of bonds paid, surrendered and cancelled. 


represents bonded indebtedness of company. 


surplus, beginning of year. 


Credited with net annual profits from G 4, Profit and Loss, year to date, 


Debited 


Balance 


and with any profit of extraordinary nature resulting from 
causes other than grain operations, milling and merchandising. 


with net annual losses from G 4, Profit and Loss, year to date, 
and any losses of extraordinary nature resulting from causes 
other than grain operations, milling and merchandising. 


With any dividends declared or other distribution of profits to 
stockholders. 


represents surplus profits, and which exists in the excess 
working assets of the business. 


Profit and Loss, year to date. 


Credited with any net monthly gain as shown by accounts K 1, Grain De= 


Debited 


partment Profit and Loss, and K 2, Mill Department Profit and 
Loss. 


With monthly balance of interest on investment over interest 
payments as shown by balance of Interest Reserve, F 2. 


With any other gains due to grain operations, milling and 
merchandising and not included in accounts K 1 and K 2. 


with any net monthly loss as shown by accounts K 1, Grain De- 


‘ partment Profit and Loss, and K 2, Mill Department Profit and 


Balance, 


INCOME 


Wheat Sales 


Loss. 


With any other losses due to grain operations, milling and mer- 
chandising and not included in accounts K 1 and K 2. 


if a credit, represents net accumulated profits to date; if a 


debit, represents net accumulated losses to date, 


Pek Ostet WAND. G:039-5 


Dane 

















aa 


wo to heenpetdehaeOabhaad. elute tiet si 


7 7 « } " ve ih vip ty i & 

‘ ‘ i ty a hi Denim Sede ceLhe 
t 7 ’ , ’ 
¥ MUR es Ma phe iy Wha 2s .ord ey aa bak 
4 ei 
« Py - ; + i} res Ba | ; i 1 i y base Se Bn 438A i) 
ne 
he F P « / , 
qu Ut a is gi) A a eh nage f Gite ayn s 
af 
AES ‘ é ase 
o Stk tu r* (irk deal 








wee ml HER PB EI) TG OO ACC RRM ES a a aaa 


£ | 4 ay Od put Aiov wartte Wi tg 4 
P > f ; & Fey, eG Chet Dacstho ly sts 
\ 
\ 
seh oat ; 0) ; f om Jack Vid Wore posited 
RRO re. 4 ; Co «foi oe. Pendied ahead 
c . us 8 eine Oise a 4 ta 
- ‘ , ; i 


, , a) ' Yon gi ‘it ee tyses bee: } mee fh, 7 "ft feat ef Teo Weir diel ; é 
8. SR ae oie NP hah are sod Bing, goat Sele 


ad 62 Bee bite dan etpataben fos 81 0p cot g eth i iine,  O 
ga JdeO | Ore: Sai, a AE. Oo Aira ae Digi ar ue Died te le ‘et big: ) by 


i - t | A a ie 


: ; Ce ae oes y r ye "As 
Oo A) ae. a han’ 
: SO Phe Meer. apne! her ian tpt eed ty ow ea Av ma ie 





Credited with total billings of wheat transferred to Mill Department. 
See description of method on preceding pages. 


With total of invoices of wheat sold to customers. 


Debited with any returns and allowances made Mill Department or 
customers. 


Balance represents net sales of wheat for period and is carried to K l, 
Grain Department Profit and Loss. 


H2 Flour and Feed Sales 
Credited with total shipments and billings of flour and feed. 


Debited with freight on shipments of flour and feed as shown by "recap" 
Oren os 


With goods returned, discounts and other allowances made to 
customers as shown by "recap" of H 4. 


With carrying charges for customers as shown by accounts H 5, 
Carrying Charges. 


Balance represents net sales of flour and feed for period and is car-= 
ried to K 2, Mill Department Profit and Loss. 


HS Freight on Shipments 


Debited with all freight charges on shipments as shown by "recap" of 
freight column of Voucher Register. 


Credited with freight billed and charged to customers as shown by 
invoices to customers and charged against flour and feed sales. 


With freight on shipments to customers which is not charged to 

customers but which is also charged against flour and feed 

sales. 

With the claims collected from railroads on milling in transit. 
Balance ‘represents freight on shipments in suspense, most of which, if 

debit, is a loss; if credit, is a gain. The net loss or gain 

should be carried to K 2, Mill Department Profit and Loss. 


H4 Discounts and Allowances 


Debited with the discounts and allowances made customers as shown by 
deductions made in cash book or in journal. 


Balance represents discounts and allowances made to customers, This 
balance is charged to H 2, Flour and Feed Sales. 


H5 Carrying Charges 


Debited with total of carrying charges from "recap" of "Miscellaneous® 
column of Sales Distribution Record, 


—64— 





































Ay 


LLin ay Gonteheusns rosin ee Rabid " 


Nels 4 . setae 
ih ' \ P 


De ral 


Bios ee 





satgugdase OF Blow Jaedw $9 eeefovas to. lates taawt 


Jasnsraged [LM ebom segnaeotia. bam acrigtat: Yaa TERS: 
oT ato Feua 


et HM OF Belvine of fom bolieq wt Tao To aeibo' son alvaeeetqes 
satod bos I iewl Yaesmreqed attend 


» “going beet 
shual She “enol? to eqgnilitd bae eimeugicke cetode tyiw hes, 


¥d geoda ; He@k bas: tuelt to eimemgicde co soybec? dvi 
mas 
‘ i H te 


> i by eo ue ae . Ye ‘ a Dy ve = A » on ay vert 4 oi " “ft f 
oF eben soohawoile seta hoa esntmoath .fhomriex ahoon arin 


y —-_ 0 pea i < i . ¢: une i ‘yu 
oe 30 “Genet” JOnS 8s &tenesgyo py 


000 Yl Hota Ba ewes tego Od tenrads arivisge agiwW 
, ecard) golysitsg 


( #5 : ry ri ret 1g ‘ > tet A ay i iz * mate 
ote oh “etyuey Lo meecoo: Sig ceas 
1 
} Ou Lee Ppt as ohae §.- se L Le >" Ph ‘ig kor + Fae | iv ba 
5 J Hisio Oo Btetoisin oF eeotoval 
eyes Sore yi iiiw gometago of atuomiine wo. sinter? core 
e =r - 4 , > * \ ‘ ag Ey a ¢ = , ds Ge8 - a * . 
iS2. DFS "Eiitw M CR HOM ORL BL HOLAW Fu ayenoetene 


s2eian sf 
t 7 oe . ft f. Dew vy 7 “y iar 9 ¢ v A ae © oo ot . re 
a af . I BA de vk 4 » - fa ms . gt4 4 4 wisy Pm 2.0 21172 mJ o ans ais te ‘ 
} > fo % ¢ , j o0 op Me cc Uh oe t sf en Pee ie a Ps 
rar y 70 SOR oaineqane: al efigaytea mo sinker Leaps hi 


JEGAO.%L i: uhol aces fob. 
L SH oF bel@tas ed beads 


* 

e 

— 

Sap 

. 

; 

3-, 
a 
-~ 2 
— 


“‘noomawe tia Bon 
WH oeode. ca ervenemo abe eoonaveila OAe atavopelb ent Atiw © 
Lamyol at co dood eed ah oboe mod soubes | 
Bis «4 hteno teu et, sha eponewolia hes etrmegelbh’ errene moet: 
sloles, beel fae anelt 2 Boe begwardto as eoualad’ 





"RUOA AAs Los tM" bo Tas oen® wave anatase eaieasge to. ftoa) a 


Tl 


I2 


Jl 


J2 


J3 


Credited with carrying charges billed and charged to customers as shown 
by invoices to customers. 


With carrying charges for customers which are not charged to 
customers but which are also charged against flour and feed: 
sales. 


Balance This account should balance except for any amount which may 
remain in suspense. 


COST OF SALES 
Cost of Wheat 
Debited with total cost of wheat and freight delivered to Mill Depart- 
ment during period and also of any wheat sold to customers: See 
description of method in preceding pages. 
Balance represents the total cost of wheat and freight, transferred to 
mill and sold to customers. This balance is carried to Kl, 
Grain Department Profit and Loss. 


Cost of Flour and Feed 


Debited with balance of Product in Process and Stock account as estab= 
lished by inventory. 


Balance represents the net cost of flour and feed sales. This balance 
is carried to K 2, Mill Department Profit and Loss. 


OPERATING ACCOUNTS 
Payroll 
Debited with payments and accrualse 
Credited with distribution to operating accounts. 


Balance This account should balance as the total of all charges has 
been recharged on the basis of service rendered. 


Power Charges 


Debited with the total of charges to power, heat and light as shown by 
"Power Plant" column of Voucher Register. 


With fixed charges on basis of annual budget. See Form 3. 
Credited with the total of power charges to other departments. 


Balance This account should balance as the total of all charges has 
been recharged on baSis of service rendered. 


Auto and Truck Expense 


Debited with charges from "Auto and Truck" column in Voucher Register 
and with fixed charges on basis of yearly budgete See Form 3. 


-~65— 












V3. eegwito Selrrtes co 


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alk 


J4 


J5 


J6 


J7 


J8 


J9 


Credited with total of charges to departments on basis of service 
rendered. 


Balance This account should balance as the total of all charges has 
been recharged on baSis of service rendered. 


Manufacturing Expense 


Debited with total general manufacturing charges from "recap" of 
"Manufacturing" column of Voucher Register, and with fixed 
charges on basis of yearly budget. See Form 3. 


Balance represents total manufacturing expenses for period. This bal- 
ance is carried to J 9, Manufacturing Costs. 


Administration Expense 


Debited with total general administration charges from "recap" of 
"Administration" column of Voucher Register. Also see Form 3. 


Balance represents total general expenses of administration for the 
period. This balance is carried to J 10, Administration Costs. 


Office Selling Expense 


Debited with total general selling charges from "recap" of "Selling*” 
column of Voucher Register. See also Form 3. 


Balance represents total office selling expense. This balance is 
carried to J 11, Selling Costs. 


Outside Selling Expense 


Debited with total charges from "recap" of "Outside Selling” column of 
Voucher Register. 


Balance represents total outSide selling costs for period. This bal- 
ance is carried to J 11, Selling Costs. 


Branch Office Selling Expense 


Debited - with total branch office charges from "recap" of "Branch 
Office*® column of Voucher Register. 


Balance represents total branch office expenses for period. This 
balance is carried to J 11, Selling Costs. 


Manufacturing Costs 


Debited with Manufacturing Expense, J 4, Power Charges, J 2. 


Credited with budgeted standard cost of manufacturing charged to B 3, 
Product in Process and Stock. 


Balance represents the difference between standard costs of manufactur- 
ing as budgeted and the actual costs of manufacturing for the 
period. This balance is carried to K 2, Mill Department Profit 
and Loss. 


-66— 


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J10 Administration Costs 
Debited with total Administration Expense, J 5. 


Credited with budgeted standard cost of administration charged to B 3, 
Product in Process and Stock. 


Balance represents the difference between standard costs of administra- 
tion as budgeted and the actual costs of administration for the 


period. This balance is carried to K 2, Mill Department Profit 
and Loss. 


ek selling Costs 
Debited with total selling cost accounts, J 6, J 7 and J 8. 


Credited with budgeted standard cost of selling charged to B 3, Product . 
in Process and Stocke 


Balance represents the difference between standard cost of selling as 
budgeted and the actual costs of selling for the period. 


K PROFIT AND LOSS 
Kl Grain Department Profit and Loss 


Credited with balance of H 1, Wheat Sales. 
With credit balance of B 2, Closed Futures. 
Debited with balances of I l, Cost of Wheat (Sales). 
With Debit balance of B 2, Closed Wheat Futures. 


Balance represents net loss or gain of Grain Department for period. 
This balance is carried to G@ 4, Profit and Loss, year to date. 


K2 Mill Department Profit and Loss 
Credited with balance of H 2, Flour and Feed Sales. 
- With credit balance of standard in excess of actual costs of 

Manufacturing Costs, J 9, Administration Costs, J 10, and 
Selling Costs, J lle 

Debited with balance of Cost of Flour and Feed (Sales) I 2. 
With debit balance of actual costs in excess of standard costs 
of Manufacturing Costs, J 9, Administration Costs, J 10 and 
Selling Costs, J ll. 


With any losses for torn sacks credited to Containers, B 4. 


Balance represents net loss or gain on milling business for period. 
This balance is carried to Profit and Loss, year to date, G 4. 


Jay om 















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SE A oe a SS i EO ay 
UNIVERSITY OF ILLINOIS-URBANA 


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3 0112 0724 


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